China is UNINVESTABLE!!! Period!!! ... or ...?
ฝัง
- เผยแพร่เมื่อ 22 พ.ค. 2024
- China is considered uninvestable now and the stock prices reflect it.
0:00 China Sentiment
3:43 Investors
6:42 Stocks
8:00 Investing
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My Dad had me a little late and he should be retired but the economy won’t let him. What would be the best route, Stock,a business or what.
First of all you need to stop thinking you will get financially successful on your own and put up your big boy pants and learn/make better profits with a Licensed professional
Actually true. My family has been working with one since I was little.
Yeah you can, there is a popular one called NATHAN TRAVIS COOK. He is licensed and has over a decade of experience, he also works with all economic class of people.
You can get his details and on GOOGLE and send him a message. But remember you have to watch your spending for a while
Thank you for this video.
I'm around 40% of my portfolio in China and wanting to add. To me this is one in a life time opportunity.
Agree, i have 30% of my portfolio invested..
Great content. Thanks.
Thanks for the video!
You're welcome!
thanks for sharing!
thanks!
Thank you for this Sven!
The funny thing is, big funds are worried with China but invest billions into Nvidia and AMD. Two companies 100% relying on TSMC. If a war breaks out with China/Taiwan, Nvidia is going to 100 real quick.
The real funny thing is if there was such war, all US-listed ADRs of Chinese companies would be delisted and forced to liquidate, just as their Russian counterparts. NVDA and AMD would tank for sure but if you were a long-term investor I suppose there is a chance the supply chain would be rebuilt in other places (which is what they are doing now btw) and share prices would eventually go up again. After all, the world still needs AI with or without China. With Chinese equities one would have no chance of reclaiming the losses. If your hypothesis was true, then Sven's title should be everyone's answer to Chinese assets.
@@yaumanto people who bought Russian stocks still own them. They just can't sell them yet due to sanctions. Maybe in a couple years.
Anyways the point is that if China goes to war nvidia would crash so hard it would take 10 years as well before they might reach the same stock price again.
Sure if ur all in on China it is worse but if one truly believes China will go to war you dont hold a share of nvidia.
On top of that there is tons of other companies who are trading at higher valuations who depend 70% on China. Apple gets 20% of their entire revenue from China and 80% of that entire assembling line and has not been priced in at all.
Qualcomm gets 60% or more of their entire revenue from China. Yet its trading at normal valuations.
China has seen how Russia destroyed their economy. They won't even think about doing anything stupid. The US is also permanently stationed on Taiwan with troops.
Thanks
I really appreciate this video, Sven. Many people have a flawed vision of risk. I think the price of Chinese macro risk is already heavily priced into their stocks. So any upside at all in terms of pricing is just gravy. I invest like you do. For me, if the prices of Chinese stocks stay low, it allows me to buy more and reap the dividends over the long haul. I worry about investors who don’t realize that the U.S. is priced for perfection, yet the macroeconomic risks are still there - especially when you consider that many of the Mag 7 rely heavily on Asian markets. Hmmmmmm ….
I'm down 36% on my JD.com Stock Pick Sven. Shares cratered but net income is up. No real reason to give up. It's short term pain for long term gain (hopefully)!
there is volatility and there is the business!!
Great answer! @@Value-Investing
Good job Sven. Don't let the haters bother you. This Chanel always puts out great content 👌
Nice tô see you still read comments
Hey Sven, for the amelioration of pronunciation, the word "trough", as in "peak-to-trough", is pronounced 'troff'. Peak-to-troff. Love your videos man, thank you. Seriously.
Thanks for the info! Will try to learn it well for the next trough :-))
Who cares? Stfu
Interesting perspective. Finding value in the midst of chaos.
;-)
Yiu do good work Sven. Thank you.
Glad you enjoyed it
Very interesting Sven !
Glad you think so!
Great video! That's good for us if others see China as uninvestable and are scared to invest. That makes it cheaper with more opportunities for us!
Good luck! 😢
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Hi Sven, love your content! I’ve been looking into Mastercraft Boat (MCFT) and believe there might be value there. They are trading at a low PE multiple and high ROIC. Would love to hear your thoughts on the stock! 😁
Boat market is in free fall right now. Let it crash.
I think the US market in general is uninvestable at current valuations.
I hold small positions in BABA, TCEHY and NIO. the market fears China at this moment; wait 5 years and the tide is likely to turn for the better.
I agree, buying a selective stocks dips that will survive and grow after the collapse is the key of investing.
We people fear and start to sell the price goes down and this is the right time buy!
Best Channel on TH-cam
Sven , what happen if the access to Hong Kong and shanghai markets are closed from one day to the other like it happened to Russia. Especially to the Chinese etfs
Would also like to know this
ETF will drop to zero like Gazprom stock 😂
When there's a lot of talk about a sector or market being uninvestable, that's when you buy
around 30-35%% of my portfolio is also in Chinese companies.. keep buying at these prices.
great video and thank you!
Thanks for sharing
I always wonder what kind of portfolio we are talking about when people say 30% of my portfolio is in something. I mean, if i have 1000 USD and 50% is in 1 stock, that's no risk. If i lose it, i could make it back in a week. If you have 100k and make 3k a month, then it's an entirely different story :P
Good for u! China shares are for short term bet. Alternate long and short Chinese shares, the only way to make money.
The problem with China is not the businesses or the valuation. The problem is that it's always a gamble because of unpredictable CCP policies.
True
LOL, US banned TikTok. And you are talking about unpredictable CCP policies 😅😅
EXACTLY
China bans facebook and google. Of course tiktok should be banned in return?
I think the more reliant the Chinese government is on Chinese business, the more stable the Chinese market becomes. The fat Chinese government leaders will not want to return to pre-capitalist China.
Similar. Around 45% in China, most in Tencent and Baba, with several smaller caps in HK.
Which Tencent did you buy? On HKSE? or OTC ADR?
Aligned with Sven view. There are always opportunities if you do the proper research! We are for the long run
no link with china but i think now there is good value in:
chtr, deo and vrsn
As an IR graduate i remember reading what Martha Finnemore (if im right) said: the more the middle class in china grows the more they will ask for more rights and all the more turbulent will the political scene be.
Thanks for the video. Do you have any thougts on Pingan insurance? It seems to be very cheap.
unfortunately I am not a specialist on insurance
@@Value-Investing yes, me neither. Thank you 😌
When everybody was hyped for a supposedly cheap BABA, JD... I didn't buy because of CCP risks. More than a year later, those stocks were even way cheaper, so I thought the risk-reward was good and started a small position. Short after they started to go up, so for now I'm not adding, but I would like to! I guess it really pays to be patient and wait... and respect a decent margin of safety. One never stops to learn. When investing you mustn't lose your cool! Thanks.
"If those businesses keep growing, I hope the stocks stay low..." Well said! However, China is in a pickle on multiple fronts as you highlighted in the video. As problems mount, dissatisfaction to the party is likely to grow, and unfortunately one way to solve this is to rally the nation into a physical conflict. The military investment and preparations are an indication this option is real and considered by the party. The likelyhood of the party taking this option is the single most important factor that determines if businesses in the country are to be superior investments compared to businesses in other countries.
Do you worry about outright nationalization or at least preference for domestic shareholders?
everything is a risk to consider, then see how it relates to the price, when things are bad, all risks seem huge.
About a month ago I set up positions in FXI, EWH and BABA. The Valuation is there, the Businesses are there and the dictator seems to have understood his heavy hand is hurting his economic processes and is giving signals of a change. Volume and Flux are also there, which seem to signal a bottom being constructed.
FXI has such high expense fee though..
@@maxjames00077 true.
The Chinese culture of the population needs to shift from piling their generational wealth into real estate, rather into owning other assets their country produces, that's when the market will shift without foreign direct investment (which will follow once again), evening considering the CCPs chokehold on the country's output (as the worlds power moves towards the east) ---- love your videos Sven
Thank you Sven!
What do you think about china stocks and Buffet's rule Nr.1?
I regret that I didn't listen to his advice on Russian stocks. I was not interested in politics and now I have some frozen funds, and some 0 value ETF.
Last videos you mentioned that you too have some frozen funds in Russia, what do you expect?
I watch the risks! These thing don’t happen overnight and for now, China is still the biggest market for Apple
@@Value-Investing good point, all the factories and everything is there. As well China is 17,5 of the world's GDP, Russia is 1,7.
@@ed5069 A negotiated peace with ukraine may solve problems concerning russian stocks. Everything else is bad.
@@Value-Investingwith tock tock ban, apple might suffer
@@foseninfo8954No peace with fascists. It is more than just numbers.
Can you please let me know anout delisting of china stocks from us market is possible?
Can i do sip in china stocks?
Please guide
anything is possible, has happened, will happen again, depends on the business
My China share in the portfolio is 18% and I am happy with each of the companies. Even the ones that are heavily in the red.
Which are your ones?
@@maxjames00077 China Mobile, Haier (D-Share listed in Germany ), China Railway and Dongfeng Motors. The last one is the only one in the red.
@@gregorsimon9337
I am also invested in Haier D-Shares, a very attractive investment.
I have jd, Baba and tencent
After looking for many past days in US companies I have came to the realization that no one is touching chinese companies. I thought I was late to the game but then I realized mostly everything is still down. So now most things are becoming undervalued, that's great! First ticker I realized this with was JD. Very funny. Might be to early now, but great to add some chinese stocks to the watchlist and be patient.
Thanks for sharing!
One (of many) issues with investing in Chinese companies is, that your risk of a wipe out is substantial. The communist government may remember that it is communist and just nationalize your entire portfolio. This has happened multiple times in other countries the last 150 years. The risk of something similar happening in the US is just so much smaller. And remember: you don’t recover from a wipe out.
Correct!
usa we bun tiktok or sell it to us is thT Democracy ?
@@pentrubarbatiyes because china banned google and Facebook and more long ago. Do you really expect tiktok then should be allowed in us?
@@thomasschulz4362 yes If IT îs a real democracy ..and that crap about protecting Kids îs bs If they trully cared they banned Facebook Instagram Snapchat as they are same shit ...also Tesla Apple McDonald Starbucks etc sell a lot in China
@@thomasschulz4362 In the land of freedom and capitalism? Yes exactly that i would have expected! Let the market and people decide if a company survive.
Or does the US already need to imitate communism?
I really like the valuation of the 3 major Chinese e-commerce companies Pinduoduo, JD, and Alibaba. However there is just a lot of uncertainty for me with what the CCP will do when their mood sours or when an executive at one of these companies says something stupid and gets punished like Jack Ma and Alibaba a few years ago...
The #1 rule in investing is never lose money...and I agree with it. Which makes it difficult for me to invest significant sums in China. It's unfortunate. But, I do have a small-mid position in Pinduodou. I told myself not to increase the size of it, and that's about as much as I feel comfortable investing. Not because everyone else is scared, but because of what I see as real risks. The uncertainty of the CCP and the possibility of war with Taiwan, which will no doubt drag in the USA and Japan. What happens to US investors ownership in Chinese stocks then? Possibly wiped out, as we only own ADRs anyway which famously are not true ownership in Chinese companies...just a lot of uncertainty.
There is little volatility in China as it has dropped significantly from the peak but risk is massive. Given the politics in that country.
Tesla, Nvidia, Apple are quite dependent on China/Taiwan.... yet the same risk calculations don't apply to them?
Anyway, China is too focused on its economy to invade Taiwan. The largest headwind for China are US sanctions on poor excuses. Apparently US politicians are very fearful of China's economic & technological growth. So maybe that's actually a recommendation to invest in China...
In Emerging Markets the smart money is domestic, not international.
thanks for sharing!
Good that you shared that your research platform is 40% China, not much reason for me to pay for it then ;-)
fair:-)
Does sven say good day fellow investors OR good day value investors?
Fellow
@@droghtak thanks.
am I right believe that it is not possible for a foreigner to own Chinese assets ?
That's wrong, you can buy shares in some real chinese Companys with ISIN CN...
Can you trust the financial information provided by Chinese companies with no oversight or openness by their government?
You have to of course view them in a different perspective, but the companies earnings have reflected the negative macroeconomic environment, as well as the low consumption rates.
At the end of the day you weigh the risk factors against the rewards, as long as Taiwan does not happen or China abolishes foreign investments, I cannot see the valuations staying so low🤷♂️
I think the main risk is a war between China and the US. The problem is, the chinese stocks to a limited extent are priced for this, but the SP500 not at all. The same goes for regulations, looks like only China would suffer but a lot of American companies are cashing or betting big on growing in China. One has to decide how much of this risk is willing to take (if at all) through sizing, but also take into account which American businesses would suffer from geopolitical tensions, because they don't go one way only...
I think taking the average is not fair, stocks is a game of choice? You choose the company that will survive and grow afterwards!!!
I think there are a couple of companies will survive this collapse and will have over 60% return on investment.
Everyone is a momentum trader these days. Who cares about fundamentals. The only exception are those rare contrarian investors that use logic and reason to buy when no one else is doing it. I have owned BABA and JD and it hasn't panned out, but I still long. My only concern is delisting of these ADR shares. Any thoughts on that?
Buy on hkse
My portfolio allocates 30-40% to purchasing stocks in China listed in Hong Kong. I don't agree with the claim that Chinese stocks are uninvestable. What matters is which stocks you choose, the price at which you buy, the strategy for entering the market, where you set your stop-loss, and an understanding of the policy direction in Mainland China.😊
No risk, no fun! My BABAs +; my NIOs 2x--halved=for free now,; GCL-Tech now 2,15 P/E but accumulated at 1,5 and paid already divi--around breakeven; China Renaissance suspended but I'm long. On my radar CATL = Sven, I'am with you 🙂
GCL looks cheap. What's your investment hypothesis?
Green energy powered by politics---BRICS have sunshine w/o limit ;-)
@@attilat.3643 thanks. Let me dive deeper
QQQ or KWEB - which do you think will perform best over next few years, Sven?
you know I don't do index funds :-(
@@Value-Investing But just for fun if you had to choose one ....?
Qualities chinese companies right now seem to me like a heads I win, tails I do not lose much proposition. Full disclosure I am long Tencent.
Thanks for sharing
Long KWEB, and individual positions in BABA, Tencent, NIO, Ehang.
Thanks for sharing
Are you serious about investing in Ehang? LOL. I have BABA and TCEHY. I came from China.
Sven, evaluate some Slovenian companies, PE lover than Chinese.
I have full positions in BABA and TCEHY and a 1/2 position in JD, ≈ 13% of my "Fun Money" portfolio.
That said, come retirement time, I should have Social Security, Defined Benefit pensions, a Defined Contribution pension, a 401k and a Roth IRA to fall back on. If my China holdings go to hell, I should still be OK.
You will be blessed with those picks 👍
Thanks for sharing
It's 3 years that I'm buying chinese stocks, every dip I increased my position, now I am at almost 40% of my portfolio in chinese stocks, it's a little frustrating, but I'm holding for the long term,.
Just remember my name, because the day I will sell and say that chinese stocks are "sh*t" then go 100% long china because you know that EVERYONE has capituleted and that is the final bottom🤣
Grazie per i tuoi video Sven🙌
And do u have? Grazie
I think your right! Kind of like latin america
Sven so what are thouse 3 companies?😅
:-)))
but even if you find those names somewhere, it is about the strategy, not just a ticker :-)
Would be nice to look into Ukraine stocks. The war will end at some moment and will most likely go in Europe's direction. Could you share your thoughts on that? For example, I am tracking: Kernel Holding. Thanks
I have BYD and Tencent at around 12% each in my portfolio
i think having a small amount of china in my portfolio makes sense, but the world is going to get really crazy the next few decades. It will be fundamentally unrecognizable from the last 20-30 years. I don't see a path to things becoming more relaxed, tensions will only increase over time.
Dr Carlin. Do you buy the ADR or on the HK index?
He just said in the video that he doesn't buy any of them.
@@TheScaryGermanGuySven just said he owned 3 Chinese stocks in his portfolio.
@@TidusVen sorry. I misunderstood the question. For some reason I thought he is asking about index funds.
Both, depending on the stock.
If you can just buy the HK stock so you avoid paying ADR fees
GDP has sky-rocketed in China over the last 2 decades and the equity market is flat. It's clear they do not want investors to prosper. US model is to extract value from buyers of Treasuries. China's model is to extract value from private investors. Do not fight the idealogical model, it is anti-capitalist. Not to mention the lack of transparency/due-diligence etc.
I have been bearish on China for a long time. Espescially their domestic market. After watching the massive selloff (and patting myself on the back) I looked at a few companies I like (ex. BYD) and they are still pricey. Also, I don't want my investment to depend on weather Xi Jinping wakes up angry or not, so I am gladly out.
Same here. Its the second biggest economy in the world. I knew they were going to have a rough time for a few years but now seems like the trough.
Some are still overvalued but I picked up JD at 11 pe
Your last point is exactly my argument. The CCP can do whatever they want. Sometimes they wake up angry and attack and seize their own companies assets, let alone their geopolitical enemies assets. It is a MASSIVE gamble to let the Chinese Communist party hold your capital lol. And if your goal is to gamble, there are plenty of opportunities to do so right here in the US...
Thanks for sharing
It is better to depend on Biden being in full capacity or not ? dont full yourself there is no difference usa china are socialist countries just one says ity is a democracy the other not :))))
The chinese domestic market looks way better than the US-Dollar dependent Hongkong market.
Buffet also said don't lose your money. It would be dumb to zero your money because of a war or communism.
China stocks aren't much cheaper than Japan's or Korea's dividend yield, but you take significant political risk.
I don't look at earnings yield in China, because accounting fraud isn't punished like in the US. Dividend is a better measure.
Except Buffet has a significant amount of money in BYD
And Munger (rip) had in BABA. Also Munger in one of last annual reports told he was not concerned about risks in investing in China, referring to lose of capital caused by Chinese governement. And we know how much Munger and Buffett were risk adverse.
@@jeffjones114 Berkshire sold most BYD and TSM last year due to geopolitical risk.
@@AlessandroAnderson BABA is a great company, but he didn't expect the Chinese government to play such a big role. It is apparent to us who live in China. I invest all my money in developed markets to avoid this problem.
@@jeffjones114he is selling BYD
It's uninvestable because you are investing in a jurisdiction which does not protect property rights. Not because the index has gone down over X years. Will you be quietly selling if Chinese war boats start hovering around Taiwan just as you did with your Russian stocks? ;) Disclosure: I own chinese stocks through EM funds yet have no illusions about what they are.
Hi Sven, remember rule #1 of Warren Buffet. Never lose money.
Russian stocks got stocks wiped out due to wa.r Overnight zero value due to sanctions. Chinese stocks seems a similar risk / reward proposition, except that Russia respect free markets / private property (more so than many Western nations). Thanks for the video.
China is too enmeshed in the market for sanctions to be effective. It will be a who blinks first situation and I assume China has more discipline than advertised
Finally somebody who understands its actually western countries not respecting property rights.
I lost a lot in the russian ETFs...
and what war is china getting into or ever has... ridiculous fear, your loss
Indeed, all of my Russian stocks frozen in Euroclear. I was 100% in your position just two years ago. Now I cannot even count those as a tax losses. Good luck @@jeffjones114
Re-entered China tech at the end of Feb. - falling inflation and rising GDP
thanks for sharing!
In 2023, ,the number of newly established non-Chinese enterprises in China increased by 53766, up 39.7% from 2022; among them, the actual investment in the Chinese market by France, the UK, the Netherlands, Switzerland, and Australia increased by 84.1%, 81.0%, 31.5%, 21.4%, and 17.1% respectively. From the industry perspective, the actual utilization of foreign investment in manufacturing industry amounted to 317.92 billion yuan, of which the actual utilization of foreign investment in high-tech manufacturing industry increased by 6.5% year-on-year, and the actual utilization of foreign investment in medical instrument and apparatus manufacturing industry and electronic and communication equipment manufacturing industry increased by 32.1% and 12.2% year-on-year respectively. The actual utilization of foreign capital in the service industry amounted to RMB 776.08 billion, with the actual utilization of foreign capital in the construction industry, scientific and technological achievement transformation services, and R&D and design services increasing by 43.7%, 8.9% and 4.1% respectively year-on-year.
In my opinion China now is similar to russia a few years ago. Most stocks looked pretty cheap. But as we see now, completely all investments were lost in one day. Something similar could happen in China.
Thanks for sharing
only western investors were deprived of their russian investments by their own governments
@@lorellaldos5263 but the loss of investment brought down prices for all
except China is not Russia, it actually has a rational leader, not a KGB psycho leader
@@lorellaldos5263 you can easily get a russian citizenship and access to the free russian market 😊
i'm long baba, bidu, prx and msci EM and i will sell my shares happy to those yelling china is uninvestable when they popped hard!
With all respect, I remember how you were saying how good Gazprom stock is...
it was, but I was always also saying the RUssia risk is to watch :-)
I believe that if you do not fully understand a business, then you should not own the individual stock. Attend the quarterly calls or it's impossible to understand the business. Earnings calls are not in English. Also, the government issues. No thanks on Chinese stocks.
thanks for sharing, but many calls are in English while some don't have calls but have been around for decades...
I bet Sven wont catch the falling knife. Chinese themselves are buying all the gold they can or if they are able getting money out.
Sta bude kad ovi u zapadu napadnu Kinu?
konec sveta. :)))
i love when the time comes when China is uninvestable. It's only a matter of time until it becomes investable, after it jumps 50% :D
It’s always like that, after the fact the market is up 50% then it’s investable 😂
I see it as an opportunity with a risk like any thing! Selecting the right stocks is the key now.
im a simple person, since I can't read chinese company filings and statements, I dont invest. Sven thanks you for the video.
Most large companies also have ADR's in American stock exchanges and have their reports in English. Even of their investor relations websites, they provide the 10-k filings and reports in English.....
@@bernfar82 I know but when you invest in a Chinese ETF, you invest in companeis headquarterd in China that don't comply with U.S laws and regulations. So im not confidend enough to invest. if you are, i wish you all luck in the world!
@@bernfar82 The problem is that you're investing in a communist country, and not like Western communist standards, but ACTUALLY communist. Like, the communist government can seize or manipulate whatever they want at any time with no reasoning. Technically, when you "own" shares of a CCP ran-business, you don't "own" anything. Even a Chinese citizen doesn't own it, let alone an American, who every other year America and Chinese ban different aspects of each other from each others countries. This is the biggest risk with Chinese stocks imo.
@@jsedge2473 I agree, I have BABA and Tencent, but I am worried about geopolitical actions, for example, China will attack Taiwan and it will be a similar situation to Russia due to sanctions un-tradable.
Thanks Eline
Interesting take on China, I think the chinese stocks are also suppressed with the looming presidential elections whereby trump might win and impose restrictions on china.
Remember when Mexican stocks were "uninvestable" just a few years ago? Now foreigners won't stop talking about them.
YOU CANT BUY CHINESE EQUITY… you can only buy tokens from some islands… there is no legal way to be owner of chinese equity on VIE structure… educate yourself and then decide do you want to buy businiess or token?
That's actually not true. The VIE structure only goes for tech businesses, you can own none tech businesses. Also, the VIE structure isn't that much of a problem. If China would screw with that, their tech sector would be crippled, leaving them behind every other country in the world.
CKHUY, BABA, BYDDY
Chinese companies keep diluting the price of shares by printing more every year. As soon as the price goes up, they print more shares.
yes that's what I've finally realised why it's not worth buying. but stuck holding the bag
Not all of them. BABA has been doing "effective" buybacks, for example.
Not all :-))
which ones, I'm not aware of any
@@lorellaldos5263 Nine dragons paper is not. It was also a speculative play of Sven years ago!
first!
Thanks
"Owning businesses is what matters". In this case you literally own a contractual abbligation with some paper companies in the cayman islands...
And you think China is so dumb to say no need and waive about the whole foreign money?
@@zamonischeswunderrind1353communists don’t care about your property rights… soon as it suits them to screw you, they will. No courts or laws to rely on. The CCP is god in China
@@zamonischeswunderrind1353 No, but only if is convenient for them. Check what happened between alipay and yahoo in 2011, it's an interesting case study.
There are also a lot of real chinese Stocks (ISIN CN...).
1:59 how can they talk about "correction"?!? How can a market that's already cheap, "correct" to something even cheaper with ridiculously low PERs? This is so American - no care about meaning of words. It's like their use of "rally" for an upwards surge. No, guys, a "rally" is when something's been beaten down and then fights back - not when something's already high and goes higher!
and let's hope it always remains like that :-)))
Russia was cheap pre Ukraine, and China is cheap for a reason too.
No value in this video. I watch Sven videos from time to time but it seems the content is deteriorating. Sven begins his video by whining about bearish comments about China when he himself exited his Chinese stocks when they went down leaving his platform followers hanging. Then he goes on saying "digging deep" but again, goes on talking about P/E ratios. P/E only speaks to pricing, not valuation. To valuate a company or index, you have to adjust earnings to determine the true earnings power. The earnings or cashflows determine the future value of a company, not its relative pricing. I found a lot of value listening to Bloomstran (China bear case), Vinall (bull case), and Aswath Damodaran (pricing vs. valuation).
thanks for sharing
Last time Sven had so much of his portfolio in a country (Russia) they invaded another country a few months later. Is this a sign.
yes, and Sven sold at the first tank and made money :-) But yes, there is a risk so the key is to watch it!!!
Good Luck@@Value-Investing
chinese government self inflicted wound. It is too late to save its stock market now....
The question is: which company in China has earnings based on its own real performance and not due obscure subsidies that are not visible in their statements
If they are not visible then how do you account for them in the balance sheet? Non sense BS with zero base.
Reading this kind of comments is a major tell yo be bullish on China, everyone talking nonsense and weird conspiracies.
In the US the answer would be 0 companies, with the FED printing unlimited money.
China stocks are a bargain
My portfolio is down by 40% because of BABA, Tencent and BIDU.
When I look at S&P……😡😡👹👹
that means you went 100% into China a while ago
@@Value-Investing
No. Only those stocks. I should have said stocks instead of portfolio.
Thanks for correcting!
What do you think will happen to your holdings when China attacks Taiwan, will be worth 0
thanks for sharing!
@@Value-InvestingYou can’t ignore this risk.. it will happen at some point of time.. like it happened for Ukraine.. Chinese govt first priority is to control the people.. even if it’s at the cost of investors.. and that’s evident that even after 8% yoy growth for so many years.. investors are in losses even after investing for 8-10 years..
It reminds me of when you bought Central Puerto from Argentina 😂
China is not only investable, is the best macro area to invest right now, at huge discount.
Chinese stock market will go up when the S&P will go down: 2025.
Thanks for looking into the future for us
In my opinion "Owning businesses is what matters" sounds strange when we are talking about a communist country. 40 percent exposure of portfolio on China is way too risky. I don't understand Sven's logic on this topic.
good point, but I haven't discussed the strategy and the timing of it, which is the key component.