23-07-2022, 11:20 AM
Investing in China is of a high difficulty level.
Good and innovative companies have been unfairly penalised by the communist party for voicing out against the government. This is due to the latter's priority to quell chaos and disorder as well as never allowing a party to be larger than them. Effectively, these china companies will never be able to grow big and expand their influence due to being pegged back
Similarly, the smaller companies with dubious business and low reported P/E, but listed overseas are able to continue their operations in China because they are not cheating money off locals but foreigners.
Good and innovative companies have been unfairly penalised by the communist party for voicing out against the government. This is due to the latter's priority to quell chaos and disorder as well as never allowing a party to be larger than them. Effectively, these china companies will never be able to grow big and expand their influence due to being pegged back
Similarly, the smaller companies with dubious business and low reported P/E, but listed overseas are able to continue their operations in China because they are not cheating money off locals but foreigners.