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Investing in China Based Companies?
Posted on 7/8/22 at 8:42 am
Posted on 7/8/22 at 8:42 am
Curious to see what the boards thoughts are on China in regards to investment opportunities over the next 2-5 years. China got hit hard with their insane Covid policy this year but they’ve already started to rebound and are definitely taking advantage of the current commodity situations.
Obviously when dealing with China you will always have geo-political uncertainties but the reality is they are a growth engine of the world and have a billion+ people. Any companies any of you are looking at or already own?
Obviously when dealing with China you will always have geo-political uncertainties but the reality is they are a growth engine of the world and have a billion+ people. Any companies any of you are looking at or already own?
Posted on 7/8/22 at 8:56 am to ChiGator
For us here in the USA it is really hard to invest in Chinese companies due:
1. Political uncertainty, as China has stated many times over they don't like the idea of foreign people having control over their businesses. This risk seems to come and go. While I do not think the large companies like BABA and Tencent will ever close up completely. I would not be surprised future companies will have much more trouble getting to market.
2. Most large companies in China allow foreign investments through Variable Interest Entity (VIE). Which sort of skates around the Chinese rules of foreign stock ownership. So you really are not buying the same shares that you can buy on the Hong Kong exchange, you are buying a holding company in the same name from the Caymans.
1. Political uncertainty, as China has stated many times over they don't like the idea of foreign people having control over their businesses. This risk seems to come and go. While I do not think the large companies like BABA and Tencent will ever close up completely. I would not be surprised future companies will have much more trouble getting to market.
2. Most large companies in China allow foreign investments through Variable Interest Entity (VIE). Which sort of skates around the Chinese rules of foreign stock ownership. So you really are not buying the same shares that you can buy on the Hong Kong exchange, you are buying a holding company in the same name from the Caymans.
Posted on 7/8/22 at 9:38 am to UltimaParadox
Watch the doc on investing in Chinese companies. It shows most are a pyramid scheme and don’t be the last one holding their stock
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