Hedge fund manager warns about Beijing’s “predatory” Tencent


Hedge fund managers have warned investors about the diversion of profits from China’s Internet giant Tencent, an important holding of the Canadian Pension Plan Investment Board (CPPIB), to the Beijing administration.

“The Chinese government is plundering Tencent’s shareholders. It’s likely to be well over 50% of their profits, and the government is forcing them. [US]$ 15 billion to go to “common prosperity” to achieve CCP [Chinese Communist Party] “National policy” Kyle bath, Chief Investment Officer of Hayman Capital Management tweeted on August 19th.

NS CPPIB He manages and oversees the retirement fund for 20 million Canadians.

The CPPIB publishes stock updates only once a year and previously told The Epoch Times that it would not comment on a particular stock. In the last update on March 31st, CPPIB Disclosure of approximately $ 4.5 billion in Tencent shares.

media Xi Jinping Jintao of China on August 18, China was reported to have stressed that the focus on the moderate wealth for everyone.

“Common prosperity is an essential requirement of socialism and an important feature of Chinese modernization,” said the August 18 translation. People’s Daily report.

The South China Morning Post also reported that Tencent said it would specify. US $ 7.7 billion To respond to Xi’s call for common prosperity.

Tencent’s share price has fallen 30% since March 31st.

Contrarian advice

last week, Black lock Wei Lee, chief investment strategist at the Investment Institute, suggested that China should increase its investment in China as it is no longer an emerging market, despite Beijing cracking down on Chinese companies.— —Proposal criticized by Bass.

“Behind Afghanistan’s blunder, BlackRock’s own Wei Lee says it’s time to triple down investment in Chinese stocks! You can’t make up for this either. This is literally deceived. It’s a financial war for easy US investors, “he tweeted.

Bass added that the Chinese Communist Party is the biggest risk facing US investors, as it has neither long nor short positions in Chinese securities.

The world’s largest asset management company, Black lockMark Machin, a former CPPIB CEO who managed some of CPPIB’s investments, consulted with BlackRock CEO. Larry Fink Insights on multiple investments.

The CPPIB did not respond to requests for comment on investments in Chinese companies or whether to publish updates on holdings more often than once a year. It works arm-length from the federal and state governments.

Treasury officials did not mention whether the CPPIB would more frequently update the government with its holdings.

Rahul Vaidyanath

Rahul Vaidyanath


Rahul Vaidyanath is a journalist in The Epoch Times of Canada. His areas of expertise include economics, financial markets, China, and defense and security. He has worked at the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York and Los Angeles.