China stock market in free fall....no one paying any mind.

Specterx said:
The problem with China stocks is that the CCP doesn't give a f*ck about shareholder returns. There's no reason to expect listed companies to provide anything at all in the way of distributed profits for the foreseeable future, at the very least while Xi Jinping is in charge.

There's also the very real prospect of open war between China and the USA/West within the next decade - I'd assign this at least a 50% probably, in which case any positions you own in China/HK stocks or other China-based assets will be zeroed out.

Buying low is all well and good, but sometimes cheap stuff is cheap for excellent reasons, and may in fact still be expensive. Just ask the guys stuck holding Russian shares which looked so attractive at 10%+ earnings yields. Personally I"d consider buying China stuff at a dividend yield (not earnings yield) of 15%, and would definitely put some money in at 25%, but FXI yield is currently like 350bps.
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why would ccp cares about shareholder returns? call powell
 
i don't have problems with china. it is ovbiously we lost them since trump, they are now creating their own rules, and they are everywhere to sell their manufactured goods, not much services though.

stuff they made are inexpensive because the rest of the world are not wealthy and can't afford it.
 
Pick a date about 10-15-20 years ago. Put imaginary-USD 100,000 in US index of your choice, convert imaginary 100,000 USD to imaginary-RMB at that date's rate and invest in China index of your choice. Price both investments today. Convert RMB to USD at today's rate. How many-fold would the investment in China have to grow to match the one in the US? x5, x7, x10?
 
David's faith said:
I am bearish on Baba since it crashed through 200. Never traded anything else China related. Don't touch the Wild East. How much did you gain in comparison with long China?
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Bought baba when it went public, and exited at 120. Longed SMIC when the new CEO was executing the expansions vs TSMC, not to mention bunch china related US tech names like Apple NVDA AMD. But now I can’t even trade HSI index fund on IBKR since Trump went to war with them, probably close to 1m realized profits over the last two decades.

Buy the dip.
 
mervyn said:
Bought baba when it went public, and exited at 120. Longed SMIC when the new CEO was executing the expansions vs TSMC, not to mention bunch china related US tech names like Apple NVDA AMD. But now I can’t even trade HSI index fund on IBKR since Trump went to war with them, probably close to 1m realized profits over the last two decades.

Buy the dip.
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I asume you have a larger (fundamental) timeframe in mind? Like 1-2 years, or even longer?
 
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