George Soros: Investors Piling Into Chinese Stocks Face ‘Rude Awakening’

Liberal philanthropist George Soros has issued his take on the recent interest in Chinese stocks, warning investors that they are in for a rude awakening.

In an opinion piece published by the Financial Times, Soros warns of the impending risks investors may not be aware of when they take advantage of the recent dip in Chinese stocks. Share prices have plummeted since the beginning of the year, as tit-for-tat measures by Beijing and Washington have ignited a regulatory crackdown. Although China’s financial authorities have taken strong measures to assure foreign investors that the country’s markets are still lucrative, Soros suggests otherwise.

It “is a deception. Xi [Jinping] regards all Chinese companies as instruments of a one-party state. Investors buying into the rally are facing a rude awakening. That includes not only those investors who are conscious of what they are doing, but also a much larger number of people who have exposure via pension funds and other retirement savings.”

According to the billionaire investor, pension fund managers that are investing in Chinese stocks while strictly adhering to ESG standards are duping themselves, because the Chinese government is not accountable to international authorities. Soros specifically took issue with BlackRock, accusing the hedge fund of including a significant proportion of Chinese companies in its portfolio, which ends up overweighing ESG market trackers.

“These indices have effectively forced hundreds of billions of dollars belonging to US investors into Chinese companies whose corporate governance does not meet the required standard,” he wrote. The warning comes merely weeks after BlackRock persuaded investors to raise their exposure to Chinese equity stocks to as much as 10% of their portfolios.

Soros also praised SEC Chair Gary Gensler for taking a more hawkish stance with China, and issuing warnings of the potential financial risks unbeknownst to American investors. In response to Gensler’s warnings, Soros said, “Xi’s China is not the China they [investors] know. He is putting in place an updated version of Mao Zedong’s party. No investor has any experience of that China because there were no stock markets in Mao’s time. Hence the rude awakening that awaits them.”


Information for this briefing was found via the Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Kyle Bass Reminds Texas That A Billionaire With Ties To The Chinese Communist Party Owns A Massive Piece Of Land Right Next To The Laughlin Air Base

When Kyle Bass, a Dallas-based hedge fund executive and a staunch critic of the Chinese...

Monday, August 1, 2022, 05:07:00 PM

China’s Export Cutoff May Lead To Rare Earth Rush, US Scrambles for Seabed Minerals

An emerging crisis in the global supply of rare earth elements is drawing heightened scrutiny...

Thursday, April 17, 2025, 02:59:00 PM

TikTok Versus The US Congress

Ladies and gentlemen, have you seen what’s been going on in Congress lately? I mean,...

Monday, April 3, 2023, 01:30:00 PM

Citizens In Shanghai, Beijing Rise Up To Challenge Xi’s Covid Policies

In a country where dissent is quashed and protesters put in jail, it’s surreal to...

Monday, November 28, 2022, 10:17:00 AM

Tesla Owners in China Demand Compensation Over Drastic Model S and Model X Price Drops

Tesla (Nasdaq: TSLA) has implemented another round of significant price cuts, this time for its...

Tuesday, September 5, 2023, 06:18:00 AM