Tony Daltorio

Three Myths About Business in China

Thank you, Shaun! Finally someone who gets it!

China is NOT reliant on exports and on the US, yet the media and most investors look at only a few coastal cities in China, which are export-oriented, and ignore the remaining 95% of the country which could care less what the US economy does.

China: Beware Bubble 2.0

What a funny article! I can't stop laughing - "the (US) financial sector is once again back in fighting shape." The author should get his kool-aid somewhere besides Wall Street and CNBC.

China: Beware Bubble 2.0

I'd also like to point out that many "experts" like doubleshortetf have never been outside the big Eastern cities of China where US businesses are located. They have no clue what is going on in the other 90% of China.


On Aug 07 01:14 AM rlirph wrote:

> I for one agree with with doubleshortetf. There are too many "experts"
> here and else where who claim to be China experts but they have not
> spent sufficient time in the country. Many are confused with A shares,
> B shares, H shares.
>
> I just like to point out the fact that China government is the biggest
> landlord in the country. In spite of all they say, please understand
> that land auctions bring in lots of money each year to the government
> coffers. The government may say and act half-heartedly about high
> real estate prices. In reality it is against their interests that
> real estate prices collapse or remain low. Just look at how Hong
> Kong government maintains high real estate prices and you will see
> how China government will act in the future.
>
> US Expat Living In GZ...
>
> On Aug 06 07:36 PM johnqh wrote:

China: Beware Bubble 2.0

Oops, sorry. When I read through your litany of "facts", I thought you were talking about the US economy, market and government.


On Aug 06 03:08 PM 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 noncollectable 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 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 lend. 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.
>
> Disclosure - Accumulating FXP and initiated shorting BIDU at $336.
> Open order to short more BIDU at $358.