SINGAPORE (Jan 8): Chinese government directives aimed at keeping investment capital at home and US rejection of Chinese investment are combining to put a rocket under the Shanghai Index. The rapid and substantial index uptrend breakout is not just a short-term move. It reflects a broader shift in policy and confidence.

The rejection by the US Committee on Foreign Investment of Ant Financial’s takeover of MoneyGram International is symptomatic of the change. The takeover, proposed by Alibaba Group Holding, was rejected on national security grounds. Cynics might call this a “Trumped-up” excuse.

We are not talking rocket science, weapons of mass destruction or sensitive military technology. This is a finance platform and the fact itself suggests that the drivers of the decision are following a much broader agenda. Chinese investment capital is less welcome despite Jack Ma’s personally guaranteeing US President Donald Trump that the takeover would create one million US jobs.

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