Wall Street Foresees Risk Investing In Chinese Firms
- ByStartupStory | July 10, 2021
After the removal of the Didi app, Wall Street foresees risk investing in Chinese Firms. 2 days after US top investors invested in Didi App, China Cracked down the company, and it was a big blow to US investors which include names like Goldman Sachs, J.P. Morgan and Morgan Stanley. The Chinese companies ordered the removal of the Didi App from the app store citing data privacy concerns and its stock dipped 30 percent of its origin value just sometime after many US investors landed billions into it. Even share market experts, encouraging the US investors to put money into Chinese companies, admitted the fact that Wall Street can no more calculate the risk taken by investors, who invest money in Chinese firms. CNBC host Jim Cramer who had earlier remarked on Didi App: “I would try to get as many shares as you can . I doubt they’ll have much trouble with the regulators” later changed his views on Chinese regulated firms.
Though there were enough signs that Chinese regularities are cracking down on their tech giants, the New York business experts kept on ignoring the red flags, and told their viewers that investing in Chinese firms is a secure bet. Millions of US investors are facing the consequence for a rash act now.Author Josh Rogin said, impressed with the lucrative Chinese market, Wall Street firms and US regulators provided assistance to Chinese companies in raising money from US investors. Until this case, many experts used to believe that the Chinese Communist Party was financially smart, they never believed that CCP would kill its Wall Street business but the Chinese government has falsified all these claims. And this situation is getting worse, huge Chinese tech giants like Alibaba and Tencent are paying fines against various allegations. The Chinese government is still de-stalling many companies that have raised money from the US market.
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