Should You Stop Investing in China? - Evergrande, VIEs and other Chinese Risks

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Thông tin tác giả Money For the Rest of Us and J. David Stein được phát hiện bởi Player FM và cộng đồng của chúng tôi - bản quyền thuộc sở hữu của nhà sản xuất (publisher), không thuộc về Player FM, và audio được phát trực tiếp từ máy chủ của họ. Bạn chỉ cần nhấn nút Theo dõi (Subscribe) để nhận thông tin cập nhật từ Player FM, hoặc dán URL feed vào các ứng dụng podcast khác.

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:

  • How has the Chinese stock market performed in 2021
  • Why has Cathie Wood and Ark Invest dramatically cut their Chinese stock exposure
  • What are examples of regulatory changes in China
  • Why the stocks of Chinese online tutoring companies that trade on the New York Stock Exchange fell 90% this year
  • What are variable interest entities (VIEs) and why they are a risky corporate structure for Chinese companies
  • How a high private sector debt burden could lead to a banking crisis or contagion in China
  • What are ways investors can invest in emerging markets while having a smaller allocation to China

Thanks to LinkedIn and Simplify ETFs for sponsoring the episode.

For more information on this episode click here.

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 Times

China’s dodgy-debt double act—The Economist

China’s bid to stabilise its property market is causing jitters—The Economist

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218: Is China or the U.S. More Vulnerable?

249: Should You Invest in India?

328: Are You Underweight Chinese Stocks? Pros and Cons of Investing in China

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