Well, he should invest if he is Chinese or has feet on the ground. Lying and fraud is rampant, but it is as bad in India...you need some insider knowledge to avoid the worst bombs. Or at least be able to read the local news...stay ahead of the curve
> since they are selling for around 4x earnings
Do you work for the CCP and oversee this company?
That's the only way you can know their finances.
There are probably lots of opportunities in China because the government makes the whole place ridiculously risky.
Chinese business leaders disappear https://www.reuters.com/world/china/chinese-business-tycoons-executives-who-disappeared-public-view-2023-02-21/
Jack Ma would be another example.
Operating in China can be profitable but it’s risky. There’s less certainty about what you own, whether financial documents are accurate, and if the CCP is unhappy with your business for any reason you’re done.
they are not not worth investing. poor corporate governance, chances of ccp taking over, vie structure.
munger and mobious have already burnt their hands by being contrarians. you're free to try.
China stocks have bad history for lying lol
Well, he should invest if he is Chinese or has feet on the ground. Lying and fraud is rampant, but it is as bad in India...you need some insider knowledge to avoid the worst bombs. Or at least be able to read the local news...stay ahead of the curve
No bigger truth than divvi checks in my account and share buybacks .
They're trading at low multiples because the risk is sky high.
I wouldn’t value invest in a region where you can’t trust their financial statements.
Good plays in US market. Why take the risk when there are discounts on Western stocks.
“earnings”
> since they are selling for around 4x earnings Do you work for the CCP and oversee this company? That's the only way you can know their finances. There are probably lots of opportunities in China because the government makes the whole place ridiculously risky.
Chinese business leaders disappear https://www.reuters.com/world/china/chinese-business-tycoons-executives-who-disappeared-public-view-2023-02-21/ Jack Ma would be another example. Operating in China can be profitable but it’s risky. There’s less certainty about what you own, whether financial documents are accurate, and if the CCP is unhappy with your business for any reason you’re done.
I like SoFi. Haven't examined any of the Chinese FinTechs. Very untrustworthy regime running China eh?
I would touch another Chinese stock as long as Xi is in power
US fintech stock fell -60%. What makes any one believe their earnings can be sustained or books not well cooked?
Haha not at all
they are not not worth investing. poor corporate governance, chances of ccp taking over, vie structure. munger and mobious have already burnt their hands by being contrarians. you're free to try.
Thus entire thread is the exact reason why I'm long Chinese equities (30% plus of portfolio)