Hektor

Looks like the Evergrande saga is coming to a close. This might give a glimpse of what happens to rights, particularly those of foreign investors. Will the Chinese stocks take a dive tomorrow? “After multiple delays and even a few faint glimmers of hope, a Hong Kong court has sounded the death knell for what was once China’s biggest real estate firm.” “What happens next in the unwinding of Evergrande will test the belief long held by foreign investors that China will treat them fairly. The outcome could help spur or further tamp down the flow of money into Chinese markets when global confidence in China is already shaken.” http://archive.today/uX5LB https://www.nytimes.com/2024/01/28/business/china-evergrande.html

Not to mention the acquisition of Dexter using Berkshire shares and the issuance of Berkshire B shares. Should we look at all these as a proxy for monetizing Coke (and others) without friction?

https://www.nytimes.com/2024/01/02/business/india-economy-foreign-direct-investment.html https://archive.is/6sH1t From the article: "India’s economy is booming. Stock prices are through the roof, among the best performing in the world. The government’s investment in airports, bridges and roads, and clean-energy infrastructure is visible almost everywhere. India’s total output, or gross domestic product, is expected to increase 6 percent this year — faster than the United States or China. But there’s a hitch: Investment by Indian companies is not keeping pace. The money that companies put into the future of their businesses, for things like new machines and factories, is stagnant. As a fraction of India’s economy, it is shrinking. And while money is flying into India’s stock markets, long-term investment from overseas has been declining." According to the article, money is pouring into the Indian stock market, and not necessarily into Indian businesses. Will the current infrastructure spend by the Government Of India translate into confidence for local and/or global investors to deploy capital in India for the long term? Is there a perception that the rule of law needs strengthening in India? How will these (particularly the latter) affect FIH?