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Strategies & Market Trends : The Art of Investing
PICK 51.06+2.3%Dec 22 4:00 PM EST

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Rarebird
To: Rarebird who wrote (3102)12/29/2021 9:03:37 PM
From: Sun Tzu2 Recommendations  Read Replies (1) of 10712
 
I agree that the Chinese economy is not running on all cylinders. Exports are down. Properties are faltering. And even birth rate is down. But the biggest issue, imo, is the capital war between China and the US. And what makes it particularly problematic for the US listed stocks is that fundamentally both China and the US agree on reducing or removing the Chinese listed stocks.

The US perspective is that we should not help Chinese companies take over the world. Which is quite understandable. This is aside form the audit issues that have been raised. The Chinese perspective is that Shanghai or at least Hong Kong should be the major hub of Asian trade, so their companies should move closer to home. Additionally they don't want to see billionaires with international connections who may some day challenge the government.

Because both sides agree on reducing/removing the US listed stocks, it will be an exceptional stock that will remain listed on the US markets.

If this problem did not exist, then one would have time on his side and could reasonably make long term bets on companies even in the midst of economic problems.
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