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'China's companies' reap huge profits in deals with 'U.S. Government' [Copy link] 中文

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Post time 2011-8-30 09:06:56 |Display all floors
I list one case here. It is a general case, not a single case.



Before 2005-6, "U.S." government owned 100% shares of a SOE.

From 2005-6, "U.S." Government began to privatize that SOE.

In 2005-6, "U.S." officials sold 9% shares to a "China's company" at $3 billion, $0.16 a share.

In 2007-9, "U.S." officials sold part of shares to U.S citizens at $1.5 a share.

In 2011-8, that "China's company" sold 5% shares to other Asian companies at $8.3 billion.
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Post time 2011-8-30 09:10:11 |Display all floors

Huge profit is reap.

8.3*9%/5% = 14.94

14.94 - 3 = 11.94

11.94/3 = 3.98

That is to say, that "China's company" have earned 3.98 times of profits during 6 years. The investment was $3 billion in 2005.
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Post time 2011-8-30 09:15:09 |Display all floors

Foreign companies enjoy special super status.

In 2005, "U.S." Government sold the assets to a foreign company at $0.16 a share.
In 2007, "U.S." Government sold the assets to "U.S." Citizens at $1.5 a share in the first day trading at domestic stock market.
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Post time 2011-8-30 09:15:49 |Display all floors
What would "U.S." citizens comment their government officials?
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Post time 2011-8-30 09:17:37 |Display all floors
However, in reality, the "U.S." is China's

The "China's" is U.S.

the case source:
h ttp://w ww.chinanews.com/fortune/2011/08-30/3291888.shtml
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Post time 2011-8-30 09:19:47 |Display all floors
That "U.S." company is China Construction Bank.  That "China's" company is Bank of America.

China's government officials began to privatize China Construction Bank from 2005.

First our lovely government officials sold part of shares to foreign companies in 2005. Later our lovely government officials began to sold part of shares to China's citizens in 2007.


+++++++++++++++++
It' was a general case in the privatization of local government-owned assets and central government-owned assets in the past ten years.

Question1:
Did the government officials sell those assets too cheap to foreigners and too expensive to its citizens?


Question2:
Where did those money go after the assets were sold out?

[ Last edited by 468259058 at 2011-8-30 09:30 AM ]
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Post time 2011-8-30 09:38:19 |Display all floors
Some of government officials had ever defended their decisions after many China's citizens complained on the internet in 2007.

They said China had to pay tuitions in Deng Xiaoping's reform, or the price of Deng's reform.

China's companies were less productive than Western companies. Bad management contributed a lot to the low productivity and low efficiency.
In order to learn the advanced management from Western companies, China's government officials had to sell those companies a little cheaply to Western companies.

Question3:
Do you agree with that theory of those China's government officials who in charge of the privatization of trillions of dollars of government-owned assets?

[ Last edited by 468259058 at 2011-8-30 09:59 AM ]
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