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Post by Pacifico on Feb 25, 2023 15:35:14 GMT
I steer clear of China as I dont want to support the Communist regime and the returns are lousy due to the government manipulation. Yes well the law in China is that foreigners are not allowed to own shares in Chinese companies. The way around it is that the Chinese firm sets up a subsidiary registered in the West as an investment company and one has to trust that the money made through this is like owning shares in the real operation. In other word it is an investment based on trust. There is nothing protecting you if you get burnt, which has happened in the past, but generally returns are good enough to offset the risk. Not really - over the last 5 years the SSE has risen 0.39% compared with the FTSE 100 which has gone up 11.4% and the S&P which rose a whopping 47.5%. The trouble with the Chinese market is that the major companies being an arm of the government look first to promote Government policy - investment returns come a poor second. And that is without the rampant fraud and corruption in China, which is only going to get worse now that the Government have banned Western Auditors and told government companies to only use authorised Chinese companies. |
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Post by Baron von Lotsov on Feb 25, 2023 22:58:13 GMT
Yes well the law in China is that foreigners are not allowed to own shares in Chinese companies. The way around it is that the Chinese firm sets up a subsidiary registered in the West as an investment company and one has to trust that the money made through this is like owning shares in the real operation. In other word it is an investment based on trust. There is nothing protecting you if you get burnt, which has happened in the past, but generally returns are good enough to offset the risk. Not really - over the last 5 years the SSE has risen 0.39% compared with the FTSE 100 which has gone up 11.4% and the S&P which rose a whopping 47.5%. The trouble with the Chinese market is that the major companies being an arm of the government look first to promote Government policy - investment returns come a poor second. And that is without the rampant fraud and corruption in China, which is only going to get worse now that the Government have banned Western Auditors and told government companies to only use authorised Chinese companies. The US economy is boom and bust. They printed a lot of money so that's why the massive gain - nothing to do with productivity, which is lower than in a Chinese factory, and besides you generally invest in individual companies. They can triple in size in a year with the right tech. Fraud is rampant in the US and London you know. It's just your news is biased against China so you believe its the only one who cheats. Often it is a trivial matter as well, blown out of all proportion. For example one was copywrited software, but it turned out to be a tiny utility program, probably no more than a few kb, like a command line thing - simply a mistake, that was all. You see i often chase these stories up to get to the bottom of it, rather than take the word of the New York Times or some other gutter press. |
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