Seen as China can’t be trusted to support its top businesses in times when it matters most should we DUMP all our Chinese stocks now before they break them or nationalise them?
I think people should to be honest, why should we invest in their industry when they’ve ruined ours.
They’re doing a good enough job of damaging they’re own companies at the moment.
I’m not a crusader for the UK but a view of all stocks should be considered rather than scare mongering just on one
The China Hustle some time ago I have been very skeptic of China Equity ownership. Are some of them good if you are doing short term trading? Yes 100%. Invest long term in them? More and more people are saying no as it is difficult to invest if there is lack of transparency.
Enormous issues with foreign regulations on Chinese companies, they are incapable of self regulating and see it as a violation of the sovereignty of China to check what they say is true.
Great investment opportunity
I’ve owned alibaba for a while and it’s the biggest under performing stock I’ve had.
It should be rallying but a few kinks in the armour and it’s been sold to worrying levels.
This is just a typical example as to why we shouldn’t risk investing in Chinese stocks.
Check the stats out for baba the earnings per employee, asset value, pe are all ludicrous at the current price yet its still dropping
How do you dump a china stock you never owned in the first place…the state owns and controls it all
So in 6 years, return of 192% on invested capital.
Around 18.8% Annualised rate of return. Yes that is big underperformance.
38% YOY average growth in that same time span, also underperfomance…
I was talking about my own experience with baba not its previous returns prior to my ownership, I agree baba should fly but right now it isnt
Well I personally like it, gives me more time accumulating at this ridiculous prices.
Have to agree with that, but other Chinese firms? Not so sure, if they don’t fully comply we could be looking at Hong Kong trading and the implications that come with it
@EquityInvestor would be interested in your non bias view on Chinese stocks?
I have thought this but its been weeks of drops and averaging down yet still I’m 6% in the red for what I can see is just a government led campaign.
Then this comes up this morning
I really don’t read into noise. But I am glad others are, gives me opportunity to get even better average price.
Funny how it’s noise if it’s China but fact if its UK, funny world we live in
I think it is a nice way of diversifying, particularly considering that they currently have much lower incidence levels of Covid-19 compared to most of the developed countries and the economy is going well. Nonetheless, considering differences in accounting and that it is harder to assess chinese companies I would not have more than 10% of my portfolio in chinese stocks. In fact, I probably only have around 3%. I don’t hold many asian stocks, hence I am also particularly “underweight” in Japanese stocks (as well as South Korea, Taiwan, etc). Not necessarily a preference, I just find them harder to evaluate and therefore harder to find good investment opportunities. I am actually interested in increasing my exposure to asian stocks.
Also to note the large % of debt that chinese corporations and governments have, which could in the future trigger a recession.