Complexities of Investing in China's Growth Story
12/19/23 • 28 min
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Is China's seemingly unstoppable GDP growth a mirage when it comes to stock returns? Join us as we dissect the perplexing performance of Chinese investments with Clem, and why betting on the MCHI ETF might not have mirrored the S&P 500's success. We peel back the layers of skepticism shrouding China's economic statistics and confront the elephant in the room – the outsized role of the Chinese Communist Party in the financial realm. With the backdrop of mounting US-China tensions, from trade spats to tech tussles, we scrutinize the influence these feuds have had on the Chinese market and deliberate the evolving landscape of capital acquisition by Chinese firms.
The journey gets personal when we dive into the world of Chinese ADRs, where the stakes are high and the legal complexities, even higher. Our discussion with Clem unveils the precarious nature of variable interest entities, a legal labyrinth that leaves investors balancing precariously on a tightrope of risk. We contemplate alternative strategies for capitalizing on China's economic engine without directly engaging with its volatile stocks. And as we traverse the terrain of global enterprises with deep roots in China, such as Taiwan Semi and Starbucks, we tackle the drama unfolding around transparency and accounting standards. This is a candid exploration of the US-China financial dance, laden with legislative maneuvers aimed at keeping foreign companies in line, equipping you with insights to navigate this challenging investment landscape.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
Please text and tell us what you like
Is China's seemingly unstoppable GDP growth a mirage when it comes to stock returns? Join us as we dissect the perplexing performance of Chinese investments with Clem, and why betting on the MCHI ETF might not have mirrored the S&P 500's success. We peel back the layers of skepticism shrouding China's economic statistics and confront the elephant in the room – the outsized role of the Chinese Communist Party in the financial realm. With the backdrop of mounting US-China tensions, from trade spats to tech tussles, we scrutinize the influence these feuds have had on the Chinese market and deliberate the evolving landscape of capital acquisition by Chinese firms.
The journey gets personal when we dive into the world of Chinese ADRs, where the stakes are high and the legal complexities, even higher. Our discussion with Clem unveils the precarious nature of variable interest entities, a legal labyrinth that leaves investors balancing precariously on a tightrope of risk. We contemplate alternative strategies for capitalizing on China's economic engine without directly engaging with its volatile stocks. And as we traverse the terrain of global enterprises with deep roots in China, such as Taiwan Semi and Starbucks, we tackle the drama unfolding around transparency and accounting standards. This is a candid exploration of the US-China financial dance, laden with legislative maneuvers aimed at keeping foreign companies in line, equipping you with insights to navigate this challenging investment landscape.
Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
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Straight Talk for All - Nonsense for None
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Straight Talk for All - Nonsense for None
Please check out our other podcasts:
https://skepticsguidetoinvesting.buzzsprout.com
SKEPTIC’S GUIDE TO INVESTING - Complexities of Investing in China's Growth Story
Transcript
Hello , this is Steve Davenport . Welcome to Skeptics Guide to Investing . Today , Clem and I are going to talk about investing in Chinese stocks .
Steve DavenportIf you hold an emerging markets ETF , about 30% of that ETF is going to be based in China . So whether to invest in China is a relevant decision , even if you're a passive emergi
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