A regulatory crackdown and ideological campaign by the Chinese government has upended the Chinese stock market, which comprises close to 40% of emerging market indices. We evaluate what is going on and what investors should do. Topics covered include: Show Notes Cathie Wood’s Ark cuts China positions ‘dramatically’ by Leo Lewis and Thomas Hale—Financial Times Beijing to break up Ant’s Alipay and force creation of separate loans app by Sun Yu and Ryan McMorrow—Financial … [Read more...]
353 Plus: China, VIEs and Stock Performance Over the Past Decade
In Plus Episode 353, we review variable interest entities, the corporate structure used by some of the largest publicly traded technology companies operating in China. We review the risks of this structure, especially in light of recent regulatory actions taken by the Chinese government against publicly traded tutoring companies. We compare the risks of investing in China and other emerging markets with the risks of investing in an expensive U.S. stock market. Become a Member If you … [Read more...]
