I am fairly certain this is a huge conflict of interest and illegal in USA law. Goldman Sachs and Morgan Stanley have made significant investments in China. Now, as China removes the democracy in Hong Kong, the big money guys are being given a piece of the action of NATIONALIZED GAS AND OIL by China.
July 8, 2020
By Kane Wu and Zoey Zhang
Hong Kong - Top Chinese energy firms (click here) have mandated investment banks Morgan Stanley and Goldman Sachs to act as advisers for multi-billion dollar deals transferring oil and gas pipeline assets into a national energy infrastructure giant, four sources said.
The word is MANDATED. In other words, China is telling these bankers they have to play by new rules or China will absorb their assets.
Overseen by a government vice premier, underlining the project’s importance for Beijing, Beijing aims to complete the asset transfers and start operation of the new entity - valued by industry analysts at more than $40 billion - by the end of September, oil industry officials said.
“The timetable is a moving target but the goal was to complete the (asset) merger by end of July,” one person with direct knowledge of the matter told Reuters.
The timeline is a moving target is nonsense. It is propaganda. Get over it.
China announced in late 2019 that it would establish a National Oil and Gas Pipeline Company by combining pipelines, storage facilities and natural gas receiving terminals operated by China National Petroleum Corp (CNPC), China Petrochemical Corp (Sinopec Group) and China National Offshore Oil Company (CNOOC)....
That is right, Morgan Stanley and Goldman Sachs are now members of the Chinese National Government.
Advisors? Really? I want to see the spreadsheets on this one because if they are attaching themselves to the Chinese government they are in opposition to the national security of the USA.
...The new entity - also known as PipeChina - was conceived by Beijing to provide oil and gas producers neutral access to energy infrastructure, and in so doing boost non-state investment in exploration of oil and gas....
Non-state investment in nationalized gas and oil assets. China is taking the money to support it's gas and oil production with no loyalty to any of the non-state investors.
Hong Kong's incorporation into China's economy will result in losses to non-state investors. China has no loyalty to these banks. Demanding investment is not part of the deal with American companies. These actions by China brings American banks under the direct power of the Chinese national government.
China National Petroleum Corp (CNPC)
China Petrochemical Corp (Sinopec Group)
China National Offshore Oil Company (CNOOC)
They are no longer autonomous companies, hence, are owned by the government of China. Any investment in these companies will be transferred to the new Chinese entity. China is mandating the investment by these banks to ensure their cooperation.
The banks need to leave China and sue China for it's losses because of a surprise nationalization of their branches in China. It is going to be a long time before the banks will reclaim their assets, but, it is what it is.
The World Trade Organization will have to hear the case. China does not care. Don't think for one minute that the Chinese government is interested in the best interests of investors. That is foolishness. China is stomping Hong Kong. They aren't worried about details.
