China Economic News

[Duskerdawn]

Short Seller Helps Sink China's Biggest Bad-Loan Manager
By Bloomberg News

https://www.bloomberg.com/news/articles/...short-call

Glaucus Research on Fullshare

https://glaucusresearch.com/wp-content/u...8_2016.pdf


Share suspended after plunging by 10%
http://www.scmp.com/business/companies/a...allegation


Fullshare another $13bn Hong Kong stockmarket mystery
by Jacky Wong (Wall Street Journal) dated 27 September 2016
http://www.theaustralian.com.au/business...9f7abcb1c0
===========

Firstly, mystery solved.

Secondly, I would like to share my views about short sellers (Muddy Waters, Glaucus, etc...) I think short sellers especially the ones that have strong working ethics often provide research reports that provide more comprehensive research/due diligence then most standard reports from conventional analysts. Additionally, their reports have clear indications of their vested interests unlike conventional analysts. In this regard, we stand to learn more from reading short-seller reports than conventional analyst reports with key points to learn in terms of spotting of red flags.

Thirdly, I think short sellers play a vital role in the stock market to ensure that companies that engage in fraud are discovered. They put pressure on bad management to correct their mistakes and they encourage investors to do more due diligence and to avoid companies with red flags. In other words, "short-selling" incentives the discovery of frauds and mismanagement and covers the area that auditors/analyst do not.

Please do note I am not a short-seller and do not intend to be one, the risks associated with short selling far outweigh the risks of holding a stock in a long position. I want to just share my opinion that it is always good to read short-sellers reports to learn the multitudes of methods of fraud and some of the key red flags you should be aware of when reading an annual report as part of your ability to minimize your downside in stock picking.

[specuvestor]

In real life, do you think it is easier to credit or discredit a person?

I think short sellers serve an important functioning keeping companies at their toes but you also realise most of the time they go for leveraged companies where a run of confidence will destroy the business, regardless of whether the company is sound or not.

So we should strike a balance.

[Temperament]

Highly leverage company like STAR HUP and many others, try as much as i want to understand these companies, i dare not touch them so far.

i may touch Star HUB.

Noble? Olam? Hyflux? etc....

[CY09]

Sometimes it depends on the banks backing them and how willing banks are willing to refinance them.

Olam and Starhub due to their links will have banks credit lines
While the lesser known highly levered companies need to beg banks to refinance them often

[Temperament]

Someone said before STAR HUP can use a lot of DEBT as capital instead of Equity because her operational income per year is quite stable.

Almost a guaranteed profitable business operation.

Any loss in any year so far?

[Behappyalways]

郭文貴接受BBC 专访（完整版）
https://www.youtube.com/watch?v=XK3CeNaUQmU

[Behappyalways]

Hayman's Kyle Bass on China's Economy, Global Risks - Presented by: The Aol. On Network

http://www.nasdaq.com/video/hayman-s-kyl...0537b8f145

[Duskerdawn]

Hayman's Kyle Bass on China's Economy, Global Risks - Presented by: The Aol. On Network

http://www.nasdaq.com/video/hayman-s-kyl...0537b8f145

Thanks for the share, it still highly uncertain exactly when the liquidity will end / correction occurs.

[soros]

Thanks for video. It seems Mr Kyle Bass is very sure the China credit bubble will burst and expects the China Financial Crisis to come - may be before Nov 2017 ??

I wonder if this means all the share prices of China Major banks listed on HKEX will be hit substantially ?

[Behappyalways]

Chanos Says More Stresses Apparent at 'Loaned Up' Chinese Banks
https://www.bloomberg.com/news/articles/...nese-banks