Friday, May 13, 2011

"China Is Not For Investing"

"I would not put a penny into a Chinese company. I do not trust the accounting and politicians can make up the laws as they go along. It is culturally acceptable to rip off foreigners. Invest in China at your own risk."
I've mentioned before that I am very bearish on China and I have a China avoidance policy.

1 comment:

Taylor Conant said...

This is true of ALL Chinese companies. The PRC has a law against foreign ownership of Chinese companies. They also have laws which prevent foreign companies from competing with Chinese companies. This is why you have Chinese versions of American companies like Youtube, Facebook, Ebay, etc., instead of those companies dominating those markets themselves.

China is, for all intents and purposes, uninvestable at this point and time. Now, could you be safe investing in Hong Kong, Singapore, Japanese and Korean companies with significant assets and business operations in China? I think you are somewhat safer but maybe not much.