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  • 'Bubble-Mania' in Shanghai Spreads to Global Markets [View article]
    Your seven-point indictment seem applicable to the current situation in some advanced economies, not just China!


    On Aug 05 11:35 AM doubleshortetf wrote:

    > Been to China over 30 times since 1998 while working for 3 multinationals.
    > It's amusing to see "experts" who has not been to China or spent
    > few days in the big Chinese cities recommending Chinese stocks...
    > Wonder if they ever spent weeks at a time in gritty factory towns
    > or poor interior areas...
    >
    > Some sober facts:
    >
    > 1. China is a communist country ruled by 1 party with iron grip.
    > Party bosses pick the politicians and many private company managements
    > since many private companies are ex-SOE (communist state owned enterprises).
    >
    >
    > 2. Corruption in China is rampant and one of the worst even down
    > to lower ranking employees. Even factory canteen chef gets "envelopes"
    > in scheme where he claims he received 10 bags of rice when only 8
    > bags are delivered.
    >
    > 3. There is almost no "law" since law itself is written to support
    > the communist party or corrupt local communist bosses. Judges are
    > appointed by the local communist boss and few if any understand law.
    > Many judges got job thru "guanxi" or connection and of course bribes.
    >
    >
    > 4. The Chinese banks in are BIG TROUBLE. E&Y got in heaps of
    > trouble for discussing hidden bad and uncollectible debts. Local
    > communist cadres dictate banks to lend to their pet projects and
    > of course friends who bribe them not to mention COMPLETE lack of
    > transparency.
    >
    > 5. No one except pea size brains trusts the communist government's
    > statistics which are MANIPULATED.
    >
    > 6. Many of the listed companies numbers are COOKED. Auditors and
    > their management can be bribed and extorted. It's beyond me how anyone
    > would trust Chinese companies' financials unless audited by Big 4.
    > And even Big 4s audited numbers are suspect since most Chinese companies
    > carry multiple books including one for taxation and another for real
    > book with slush funds.
    >
    > 7. Latest Chinese share and commodity appreciation have lot to do
    > with communists pumping money to the economy by directing the banks
    > to make loans. This kind of stimulus cannot go on.
    >
    > Now is good time to buy FXP when all the investment gurus in unison
    > are recommending Chinese stocks.
    Aug 5 12:31 PM | 7 Likes Like |Link to Comment
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