Wealthy Chinese investors convert tens of millions of dollars quietly into private companies controlled by Elon Musk, using an arrangement that protects their identities from public opinion, according to the British Financial Times newspaper quoted asset managers and investors participating in transactions.
Since a major personal mask was named in the campaign of US President Donald Trump to reshape the US government, asset managers in China have been promoting the duo’s relationship as a seduction of capital collection from the wealthy Chinese.
Money is flowing to non -public mask projects, including XAI, for artificial intelligence, nuralink and SpaceX.
Companies for special purposes
According to the newspaper, investments are pumped through non -transparent structures known as companies of special purposes, which have the advantage of hiding investor identities, to avoid the anger of the American authorities and cautious companies from Chinese capital with the decline in relations between the two countries to the lowest level.
https://www.youtube.com/watch?v=h_uiimgczas
The asset managers executing investor deals said that the entities are specially designed to avoid disclosure.
And the use of companies with special purposes for financing is common and there is nothing illegal in arrangements, however, it raises concerns about the possibility of inappropriate influence and conflicts of interests at a time when a mask is indifferent in an unprecedented manner in American policy and business.
“How can a person in a mask position have a lot of connections in China but he is still a good person to reform the US government?”
He added that the flow of Chinese funds to the Mask Mall Empire “adds to this image that he is interested in his reputation and trademark in China more than his interest in American interests.”
According to the newspaper, the mysterious nature of these special purposes makes it difficult Musk, whose evaluation has increased significantly.
In total, SpaceX raised more than $ 10 billion in investors all over the world since its establishment in 2002, according to Bashk Book.
The reason for the investment
The Chinese capital flowed to the commercial mask empire driven by profit in the first place and has nothing to do with the transfer of technology or the influence of public policy, according to the sources of the participation of transactions.
As the local economy slows down, the wealthy Chinese are looking abroad for investment opportunities.
But this investment structure means that Chinese investors are receiving limited information, if any, about the financial statements of the company and its performance, in contrast to the details that are shared with the main investors.
While Mask has a warm relationship with Beijing, it was difficult for the company to obtain a direct investment from China, according to financial advisers, and he criticized the security hawks in Beijing X because of its American army’s relations.
“It is not easy for Chinese entities to invest in a prominent American company in the field of super technology such as SpaceX … Chinese funds are not welcome in many sectors,” said Kevin Chen, Senior Economist in Horizon Financial, a New York -based financial consultant group.
Hundreds of Chinese investors listened, last Wednesday, to an online symposium to hear an actor from Homer Financial, a asset management company in East China, which offers an opportunity to invest in SpaceX for only 200 thousand dollars per person.
The Homer official expected that the value of SpaceX will double to 3 times to 3.1 trillion dollars within 3 years, partly due to “comprehensive” support from the government and the American army who continued to provide purchase orders to the space technology company “even in difficult times.”
The beginning of funding
The wealthy of China began to finance the special mask projects in the late twenty -first century, when the founder of Tesla began building an electric cars factory in Shanghai in 2019 to benefit from effective and low -cost supply chains in the country.
Early investments were eaten, and Homer said in a social media post in October that a group of its customers achieved a return of 530% by investing in SpaceX in June 2018, and they spent their money after 6 years.
Homer’s investor confirmed the number, adding that he regretted not investing more, and said: “I knew that a good businessman mask. But I did not expect to be very successful in such a short time frame.”
In the past two years, Homer has launched 3 funds to invest in SpaceX and have been able to meet the goals of capital collection within a few weeks, according to a person familiar with the matter.
When Beijing imposed restrictions on private companies – including the cancellation of the first public subscription of the “Jack Ma” company (Jack Ma “and obliging the Didi Global Car Rental Group to cancel their inclusion in the United States – the value of the growth sheet continued to grow.
“I have great confidence in a mask compared to most of the emerging Chinese entrepreneurs, who are struggling to deal with an increasingly dominated economy.”
Some Chinese paid a price to buy public shares in Musk projects, and the Chinese company Liu Group topped the news headlines in 2021 when it announced plans to invest $ 50 million in SpaceX through Tomalis Bay Capital, a California -based private stock box.
Less than a week later, Liu’s American partner canceled the deal, noting that SpaceX was uncomfortable with the general disclosure of the Chinese session, according to a subsequent legal battle between the two companies.
In response, the Chinese resorted to companies of special purposes, and asset managers collect investor money in an entity registered in the Kayman Islands (British rule), which invests money in US -based funds run by Western private stock companies, which are already investors present in Mask projects.
The presence of Chinese funds in general records of property does not appear.
https://www.youtube.com/watch?v=B madedawmMhvzc
The newspaper quoted a source close to Homer as saying that the company asked its American partners if they were accepting Chinese money, and the conditions also require the American partner to liquidate investment in extremist scenarios such as the military conflict between the two countries.
The source said: “The risks are present because we are not sure of the bad relations between the United States and China in the next few years.”
The wealthy Chinese uncertainty did not prevent the admission of deals. While the strict capital controls in Beijing, from the Mask investors in China, have limited to those who have foreign bank accounts, some wealth managers have found options to overcome the barrier.
“China faces a capital and a lack of high -quality projects. This is what we are working on,” said an investment manager in New York who seeks to collect capital from China for such investments.
