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You can look at China; however, if you invest in China you're assuming counterparty risk with Xi, as he can destroy any Chines company that he wants.
by abirch 2y ago
You can look at China; however, if you invest in China you're assuming counterparty risk with Xi, as he can destroy any Chines company that he wants.
- nonethewiser 2y agoYou also cant actually legally own most Chinese stock. IE "internet" stocks. What you can buy is an instrument intended to track them. Its called a VIE. That Alibaba stock you have? No, its a share from a seperate company setup in the Cayman Islands which should track the Alibaba stock. They are circumventing a Chinese law that makes foreign investment in Chinese companies illegal. It's a bad idea to own these.
- cbhl 2y agoThat doesn't stop people from trying -- according to Yahoo Finance, FXI (iShares China Large-Cap ETF) was one of the most-traded (by volume) ETFs yesterday.
- ronsor 2y agoI'm well aware--not saying it's a good idea to invest in China, but many investors are trying it now thanks to the success of companies like DeepSeek. I have a feeling many of them will be eating large losses in the not-so-distant future.