(DAILY TORCH) Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley are underwriting part of what could be a $40 billion initial public offering (IPO) for Ant Group Co. in Hong Kong and Shanghai, which China-controlled megacorporation Alibaba owns a 33 percent share of, raising concerns that the money will be ultimately funneled to the Chinese Communist Party (CCP) and military.
The move by prominent U.S. banks, particularly to underwrite the IPO in Hong Kong, also legitimizes China’s takeover of Hong Kong. With the national security law being imposed on Hong Kong, the Trump administration has declared China in violation of the 1984 Sino-British Declaration treaty, since autonomy for Hong Kong was not supposed to lapse until 2047 under the treaty. And President Donald Trump has waived trade privileges for Hong Kong.
The Trump administration is also withdrawing federal employee retirement investments from China — leading the world in divestment from Beijing.
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