China cheat

J’avoue que le Financial Post ont souvent de foutu bon article.

Extrait de: China cheats, Diane Francis, Financial Post,  Mar 12, 2011

The Bank of Nova Scotia hosted a cocktail party in January for the China Investment Corp. (CIC), one of the many sovereign wealth funds that has targeted Canada for resources.

Lots of people regarded this as a coup. I regard it as unacceptable.

China, and other countries, should be banned from buying Canadian resources or companies because they refuse to allow Canadians or any foreigners to buy their resources or companies.

This is simply fair and what I call investment reciprocity.

Instead, and predictably Bay Streeters applauded the CIC’s entry as a sign that Canada had entered the big leagues because this was the first office opened by the fund in the west.

Likewise, naive Canadian cabinet ministers from Ottawa and Queen’s Park alike applauded the fact that the CIC chose Toronto over other financial capitals like New York City and London.

But hold your applause gentlemen.

Here’s what a savvy investor, who attended the function, pointed out:

“When CIC opened their new office in Toronto, they emphasized that they expected to be treated like any other investor in the country,” he said. “The reaction from a couple of Canadian institutions was `that’s great for them but a Canadian has to go through a one or two-year process to become a Qualified Foreign Institutional Investor in China just to be able to purchase A shares of domestic Chinese companies on the stock exchange!!

Beijing’s stock markets are closed to foreigners, as is resource ownership.

But its government grants a few permits only if investors qualify, according to Chinese government criteria. The process is complicated and lengthy. Even if approved, these lucky few investors are restricted to so-called A shares which may not be the “A” shares of the exchange. And likely are not.

China’s attention toward Canada is even less flattering considering this reality and also considering the fact that the Canada Pension Plan and the Ontario Teachers Pension Fund applied for these permits 18 months ago and have yet heard nothing.

These are two of the most qualified investors in the world and yet they have been forced to cool their heels. Obviously approval has nothing to do with being a qualified investor” but is political. Maybe it’s about unbridled access to Canada’s resources. Whatever the reason, this is hardly reciprocal.

By contrast, Canada — the boy scout of nations — lets the China Investment Corp. pick up a telephone, rent office space and start snapping up our country and its resources. And former Prime Minister Jean Chretien and other big shots toast their invasion at a fancy cocktail party thrown by an eminent bank.

Meanwhile, Canadians have to behave like supplicants to get Chinese investment permits.

These permits began to be issued piecemeal four or so years ago by China. My question is, if they are so protectionist and political in meting out permission to invest at their government’s pleasure, what will prevent them from pulling these permits, leaving investors unable to cash out, at their government’s pleasure?

By the way, there are other culprits. AbuDhabi cut short its plans for a $20-billion energy buyout spree in Canada, after making $9 billion in takeovers, when I raised the issue of investor reciprocity.

But Investment Canada rubber stamped the purchases that had taken place anyway. Then there are the Saudis, Libya and goodness what other sovereign funds are here buying resources.

Main Street must realize that this is not free trade, free markets or free enterprise.

This is about economic colonization

Elle a tout à fait raison, quand nous disons libre-échange, le mot libre a une signification, le libre-échange, ne veut pas dire une route à sens unique.

Libre veut dire aussi laisse ton argent flotter comme tout le monde, et elle va s’apprécier selon sa juste valeur.

Malheureusement, certains politiciens sont plus proches de Baystreet, que de leurs peuples, cherchez pas pourquoi, il n'y a que sept banques au Canada.