Entering text into the input field will update the search result below

China - The Slaughter Escalates

Aug. 03, 2021 8:20 AM ETDIDIY34 Comments
Mark J. Grant profile picture
Mark J. Grant


  • No person or institution should ever buy what they do not understand or buy anything that is not verified. The financials of the Chinese companies are whatever the Chinese Communist Party wants them to be. There is no verification of anything.
  • The outreach by the Chinese government is relentless. In their desire to implement the mandates of the Chinese Communist Party, they are putting each and every investor in peril, without limits or boundaries.
  • The situation has gone from bad to worse, and in my estimation, it is going to worsen even from here. I would not own one Chinese stock or one Chinese bond now.

D-Keine/E+ via Getty Images

On July 11, I wrote:

China - It’s Quitting Time

On July 30, I wrote:

“China - Don’t be an Idiot”

I hope that you were listening. I hope that you paid attention. The situation has gone

This article was written by

Mark J. Grant profile picture
Mark J. Grant is the Chief Global Strategist at Colliers Securities, LLC. The highlights of a 48-year career in the financial services industry include positions as President of an investment bank, head of Capital Markets for four investment banks, and serving on the Board of Directors of four investment banks. He has been designated as a Bloomberg Prophet, one of only 15 globally. Mark is one of the longest serving guests on CNBC’s “Squawk Box”, is frequently interviewed on Fox Business and Bloomberg TV, and is regularly quoted in the Wall Street Journal, Barron’s, MarketWatch and other business publications. His commentary, “Out of the Box,” is subscribed to by over 5,000 money managers and financial institutions in more than 46 countries. He is also the author of a book titled “Out of the Box and onto Wall Street.” While Mark’s institutional clients include some of the largest money managers in the world, he also works with high-net worth individual investors. His unique investment strategy is especially useful for people who need yield and monthly cash flows. He employs carefully chosen closed-end funds and exchange traded funds and notes to produce monthly income for his clients, currently he is able to provide yields are 10%+, however current performance is no guarantee of future results. For additional information, email Mark at Markjgrant@Bloomberg.net.

Recommended For You

Comments (34)

alphaseek2018 profile picture
EXITED my Chinese trades. Nice gains!!!
Maybe it is an unpopular opinion here, but I actually believe CCP knows something bad is gonna hit the world economies/markets hard so they are actively trying to prevent Chinese to have more exposures to the stocks/cryptos/real estates. Without interventions, the prices of these things would have gone much higher without a doubt. Especially with the Chinese stock markets, a lot of major world indices had a massive run from last year bottom, but Chinese stock market just moved by a mere 10% or less. And China was the only country that actually had good economies activities. I definitely agree Chinese stocks are not investor-friendly nowadays, but who can tell if the same truth holds years from now? Who can say for sure that all these interventions are not good for long-term economic activities/ investment environments.
Thank you Mark Grant. I could not agree more that Communist China is no place to be putting your money. They give new meaning to the words duplicity and mendacity. Communist just being Communists, I guess and for decades now, Capitalists around the World have unwittingly failed to consider that Marxist Communism is the antithesis of Capitalism and Private Ownership. Putting lipstick on that pig doesn’t change the fact that it's still a pig.

The West was deluded into thinking that economic engagement would make that Communist Backwater more democratic and benign to its neighbors and the West. It did not happen and the Covid-19 Scamdemic is the latest example that after decades long engagement, it was a delusion of fools. To believe anything reported from Communist China is to be deceived.

What better example of what to expect from those Communist Chinese Companies that no matter how they may explain it, are CCP controlled and State Owned Enterprises, than the story of Wuhan Kingold that counterfeited 83 Tons of Fake Gold by plating bars of copper and tungsten to pad their balance sheet. The scam was detected when the bars were melted to reveal the fraud. Read about it here: www.zerohedge.com/... The company debuted on Nasdaq in 2010 and today is listed on the Pink Sheets at a value of 3 cents per share.

Given that so much of the West's manufacturing takes place in Communist China more recently, along with that blessing must be the same dramatic repercussions Western Countries realized during economic downturns, e.g., increase in unemployment and societal strife that results. Thus, the Worldwide Economic downturn due to the Covid-19 that softened demand from Western Countries similarly has resulted in the same dramatic repercussions in Communist China because along with the blessing of having acquired so much manufacturing business, so too the pain when demand slackens. Communist China and its CCP can put on a brave face and spin all the data that they may want to convince investors that all is well, but only a fool would believe it.
alphaseek2018 profile picture
Capitalism with Chinese Characteristics!
TheOldHand profile picture
@AlexTheCat3741 Can we really consider China "Communist"? I might suggest "Authoritarian" and "Dictatorial" instead. And "Capitalistic" (or maybe "profit orientated") in its own, odd, way.
You should invest in the country where people don’t while away their youth playing video games.
@greedyfellow which country is that?
larryjust profile picture
@Emptynester fka mom1

Greedy, which is it? Haiti, Yemen, Afghanistan or one of the African countries?
alphaseek2018 profile picture
@Emptynester fka mom1 China. The only major economic superpower that can make significant changes, hopefully for the good, on the dime. Here in Commie Newsom's Southern California we take 5+ years or longer to refurbish a 1 mile freeway! No kidding!!! LOL
Veritas1010 profile picture
A kin to investing in Nazi Germany (I.G. Farben Industries) or the “former” U.S.S.R.

No way. The CCP has us (and Taiwan) in there sites. It is bad enough we have to buy from them, I don’t have to directly invest in a nation which seeks our internal decay and conquest.
Joelg5 profile picture
When the prices are right, contrarians will follow in the footsteps of the late great John Templeton, and make big money on Chinese stocks. I would not place absolute reliance on the integrity of any auditors, or numbers in general. China does not have a monopoly on bad audits, and the USA would get at least the silver medal, if not the gold. Anyone remember Enron, ZZZZ-Best? I am not a big fan of the CCP, but they have been successful and the USA seems to be rushing at breakneck speed to outdo the CCP in many ways (e.g. mandates, social media crackdowns, censorship, punishments and job loss for dissident or incorrect speech, etc.). Criticizing Chinese auditors without offering evidence equivalent to Enron, is hypocrisy raised to the nth power. The USA cannot even conduct a simple county level election audit (in states with 200,000 more votes than voters).
alphaseek2018 profile picture
@Joelg5 The haters of the CCP needs to travel there to see all the great achievements they have made to date. It's no joke! MIND BOGGLING SUCCESS.
WalterNew profile picture
Hi Mark, just short Chinese funds or stocks.
What they do?
Its like LK Coffee, the same pattern, bring shares value to minimum, delist, then list again in china…
Belaboring the obvious here, any specific suggestions?
Apple Dan profile picture
Uh, sell Chinese names?
03 Aug. 2021
Just what the democrats dream of doing to this country
alphaseek2018 profile picture
@Kwaj We need to take care of ourselves first. Picking fights and also fighting among ourselves (BLM, ANTIFA, Democrats, Republicans) leads to more instability here while China continues to grow and prosper!!! America FIRST!
alphaseek2018 profile picture
Way too pessimistic. I think it's a good long term buy -5% below where it is today. I'm looking at FXI, MCHI and KWEB in particular.
@alphaseek2018 FXI at historical low compared to S&P
alphaseek2018 profile picture
I do not invest in China, why would I invest into a country that will be using the $$s to denude the USA it is not cheaper to buy Chinese but almost unavoidable today.
I created international bond/commercial paper ratings at Moody’s in February, 1974. From the outset, we required credibly audited financials. NO TRUSTWORTHY AUDIT, NO RATING. Top Japanese companies met this requirement, some European companies did not.
From my reading of financial news, and Muddy Waters reports, I would be leery of many Chinese companies. I wouldn’t bet on a ‘Chinese audit.’ In addition, there are the dangers of arbitrary, Chinese government actions, such as we have recently witnessed.
VIE shares are like bitcoins. They have zero intrinsic value but are priced according to what speculators are willing to pay. Which means they intermediately could have great returns despite being worthless in the end (if and when the CCP decides to nullify the profit sharing contracts). FOMO hot demand sets the price as with everything in the current bubble.
Political risks are really.
Usually I give Mr Grant a like--------BUT -------not today-------this article should be taken with a grain of salt!! Just Sayin!!
larryjust profile picture

Please, let us in on your reasons to hold Chinese stocks.
I am not now or have been in Chinese equities.
I am a responsible investor- mostly SPY, bookended with QQQ and a few individual names ay one end and SPYD/VYM and a few individual dividend stocks at the other end.
What I worry about is contagion from problems with China stocks, cryptos, SPACs and other popular/no EPS stocks impacting my investments.
I am happy to own my dividend stocks now- even if my portfolio stays flat (but hopefully does not significantly decline) over the remainder of 2021.
@Emptynester fka mom1 you have good reason to worry about “contagion”. It will happen…it’s only a matter of when.
I got a smile out of this article while browsing SA for the information to earn some tofu dinners. After reading twice, smiling, then I realize I don't know if this is a satire or a philosophical musing piece. And it hits me, this has the same feel as the Chinese ADRs recently.

I don't know if I should follow the Author, Mr. Grant or not since I am looking for data and I am getting an Onion editorial, a great surprise but way more than what I can process in the early morning.
larryjust profile picture

Thank you, comrade.
CCP = the group that gave Covid to the world.
AƮreiƉes profile picture
@Mark J. Grant

Geez Mark...

If you can't trust a government that oppresses it's people and others by bullying and limiting basic freedoms and internet access, who can you trust? HAHA
davenchop profile picture
@AƮreiƉes ..like Facebook and Twitter??
AƮreiƉes profile picture

Ahh, don't even get me started on social media companies. In my opinion, they are some of the main reasons for the downfall of society these days, haha
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.