China

[Paarslaars]

https://pracap.com/on-china-why-the-real-risk-is-cny-5-not-9/

[Intelligent_Investor]

Market is probably pricing in the WSJ news this morning that the US is preparing to sanction China

[Malmqky]

6 minutes ago, Intelligent_Investor said:

Market is probably pricing in the WSJ news this morning that the US is preparing to sanction China

 

looks like KWEB is up today? And my Chinese investments are up as well. Can you please clarify what you mean?

[Intelligent_Investor]

China was down the last several weeks, I'm assuming someone probably got wind of the news and was pricing it in

[changegonnacome]

One of the key questions investors have asked themselves re:China is what do you own in the context of the CCP coming in one day, overriding shareholder ownerships principles and compelling these companies to do XYZ that hurts the shareholders returns by making them do something uneconomic....which the story goes is "your fault"....because you bought a company in a communist country that doesn't care about the free market.

 

Well as the US congress, senate and now WH are signing a law to force a US firm with foreign parent into a forced sales process from its overseas parent...the question a Chinese domiciled investor should be asking ( ironically in the context of the above) is can you trust an investment in a firm with a large United States domiciled component cause the US government might come in and force that company to do something uneconomic....like force it to sell a business in a fire sale.

[Hektor]

2 minutes ago, changegonnacome said:

One of the key questions investors have asked themselves re:China is what do you own in the context of the CCP coming in one day, overriding shareholder ownerships principles and compelling these companies to do XYZ that hurts the shareholders returns by making them do something uneconomic....which the story goes is "your fault"....because you bought a company in a communist country that doesn't care about the free market.

 

Well as the US congress, senate and now WH are signing a law to force a US firm with foreign parent into a forced sales process from its overseas parent...the question a Chinese domiciled investor should be asking ( ironically in the context of the above) is can you trust an investment in a firm with a large United States domiciled component cause the US government might come in and force that company to do something uneconomic....like force it to sell a business in a fire sale.

[Hektor]

13 minutes ago, changegonnacome said:

One of the key questions investors have asked themselves re:China is what do you own in the context of the CCP coming in one day, overriding shareholder ownerships principles and compelling these companies to do XYZ that hurts the shareholders returns by making them do something uneconomic....which the story goes is "your fault"....because you bought a company in a communist country that doesn't care about the free market.

 

Well as the US congress, senate and now WH are signing a law to force a US firm with foreign parent into a forced sales process from its overseas parent...the question a Chinese domiciled investor should be asking ( ironically in the context of the above) is can you trust an investment in a firm with a large United States domiciled component cause the US government might come in and force that company to do something uneconomic....like force it to sell a business in a fire sale.

Also important to note that the CEO of TikTok USA, from what I can see, is moving around freely, does not plan to make a career switch into teaching or agriculture.

[crs223]

1 hour ago, changegonnacome said:

One of the key questions investors have asked themselves re:China is what do you own in the context of the CCP coming in one day, overriding shareholder

 

I don’t think this is a question at all.  You’ve seen it play out.

 

CCP kidnapped Alibaba’s founder, took an “golden share”, and levied a $3B fine (about 1% of market cap).  A few years later Alibaba is allowed to pay a dividend and buy back shares.

[crs223]

Among all the hysteria that China doesn't respect ownership rights… here comes Uncle Sam forcing Byte Dance to sell TikTok!

 

[Ulti]

https://www.reuters.com/world/china/chinese-brokerage-cicc-cutting-dealmakers-base-pay-by-25-sources-say-2024-04-28/

 

China's top graft-busting watchdog earlier this year vowed to eliminate ideas of a Western-style "financial elite" and rectify the hedonism of excessive pursuit of "high-end taste".

 

 

 

[Luca]

On 2/6/2024 at 1:54 PM, Luca said:

Its the year of the dragon folks, Xi aims to beat SP 500 this year...;-)

On 2/7/2024 at 9:22 AM, Parsad said:

 

That might be tough.  Cheers!

 

https://finance.yahoo.com/news/china-facing-us-financial-crisis-234945940.html

Edited Thursday at 12:31 PM by Luca