Graham - the Chinese Internet. companies are shielded from US competition, IMO. I think the current tariff tangle, makes it even more likely that Chinese keep protecting them. Seems to have worked for the Chinese, since they now have some worlds class companies in China, rather than US companies dominating the market. rather than fostering foreign investment, I think the Chinese will allow chinese investors to invest in these internet companies, which right now they can’t - because they are not trading in Stock markets in China. DO, I think the VIE structure, will go via a unified stock structure that also allows trading in China.
I am familiar with the fraud issues from the past. This is a concern, but right now, I don’t see the same kind of red flags that I found with the Chinese companies back then. They may exist, I am not a forensic accountant. I try to manage this via position size. |
