Why should Shanghai become independent from China

Sovereignty originally belongs to the people, and national sovereignty comes from the authorization of the people everywhere, and the people have the right to cancel the authorization. 

The accounting standards issued by the Ministry of Finance of the Communist Party of China forcefully stipulate that enterprises that are under the control of the state and have no other related relationships are not related parties. The Chinese Communist Party also said that Chinese accounting standards and IFRS are convergent.

China's state-owned banks have serious accounting frauds. They refuse to disclose related-party transactions with other state-owned enterprises every year. They do not meet the listing requirements at all. They should have been forcibly delisted long ago.

 

At the end of June 2021, China National Nuclear Corporation obtained credit lines of 250 billion, 270 billion, 200 billion, 152 billion, 132 billion and 130 billion from China Development Bank, Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Export-Import Bank of China and Agricultural Bank of China, all controlled by the State Council of the Chinese Communist Party. 

As of September 30, 2019, China State Construction Engineering Corporation has obtained a total of 320 billion, 350 billion and 300 billion credits from China Construction Bank, Bank of China and Agricultural Bank of China; China Railway Group Limited has obtained a total of 280 billion and 271.8 billion credits from Bank of China and China Construction Bank. 

The essence of such connected transactions is that the major shareholder of China's state-owned banks abuse their status as controlling shareholder to misappropriate and embezzle the funds of listed banks and infringe on the legitimate interests of other shareholders and consumers. Do these banks disclose such credit-granting related-party transactions in the related-party relationships and transactions section of their financial statements? The accounting standards issued by the Ministry of Finance of the People's Republic of China forcefully stipulate that enterprises that are under the control of the state and have no other related relationships are not related parties, so that banks can conceal affiliated transactions under the coercion of the Chinese Communist Party, which is a systematic financial fraud.

What's the point of Shanghai and Hong Kong staying with a country that commits systemic financial fraud? The integrity of the capital market relies on an independent judicial and auditing system, which not only requires accounting firms to be independent of the management of listed companies, but also includes the ability for regulators to independently inspect the audit papers of accounting firms or auditors in Hong Kong and being able to independently pursue the legal responsibility of the major shareholders of listed companies. The current situation of the People's Republic of China does not support the independent supervision of listed companies. Both the major shareholders and supervisors of the regulated objects are  the Central People's Government of the People's Republic of China, which implements the one-party dictatorship system of the Chinese Communist Party. Only the independence of Shanghai and Hong Kong can solve the issue, realize the independence of regulators from the major shareholders of the regulated object, and effectively prosecute the State Council of the People's Republic of China for misappropriating funds from listed banks and concealing such related party transactions in financial statements.