Investing in China

28
Mar

China and the Fear of Missing Out (FOMO)

Whenever we are dealing with let’s call them “hot” assets (and yes, Chinese assets most definitely fit this description), greed tends to kick in and determine market participants to get ahead of themselves with respect to gaining exposure to the assets in question. The term “FOMO” (Fear Of Missing Out) is quite relevant in this

27
Mar

Can (Chinese) Asset Prices Be Manipulated?

Whether we are referring to low-liquidity markets such as cryptocurrencies, more liquid ones such as certain Chinese assets and even ultra-liquid markets like the S&P 500 or foreign exchange pairs, discussions or better stated controversies surrounding the manipulation of the asset(s) in question abound, usually manipulation involving either one extremely well-funded entity (or “whale”) or

24
Mar

Can China Represent an Alternative to Excessive Western Regulation?

As shocking as the concept may seem, China can indeed end up representing a better jurisdiction from a regulatory perspective in quite a few cases but right off the bat, we want to make it clear this doesn’t mean it can be considered a perfect one, not by a long shot. Instead, we would like

01
Mar

Monopolies and Oligopolies in China: Entrepreneurship Deterrent?

Few things are more conducive to entrepreneurship-driven economic growth than a level playing field, than an economic reality which enables anyone with a dream to go for it. Think of it as the difference between achieving centralized economic growth that is “orchestrated” by the state and achieving “organic” growth in a free market framework by

28
Feb

Stagflation Risks in China (and Elsewhere)

Under normal circumstances, whether we are referring to nations that can be considered highly developed based on nominal as well as per capita metrics (the United States and Germany, for example), under-developed nations or countries such as China that lie somewhere in-between (developed in nominal terms, under-developed based on per capita metrics), the relationship between

27
Feb

Inflation vs. Deflation: Implications for China

Time and time again, those in charge of monetary as well as fiscal policy try to find the right balance between avoiding deflation and not bringing about an inflationary spiral. The more let’s say vulnerable a nation is, the more it can be considered at risk from this perspective. To put it differently, things are

12
Feb

(More or Less Perceived) Chinese Double Standards and Ambivalence?

When embracing a new jurisdiction such as China as an investor, it is without a doubt important to wrap your head around a wide range of new let’s call it jargon: administrative regions, industry-specific particularities, you name it. However, while it is without a doubt important to understand the words that are being used, it’s

11
Feb

(When) Should You Sell Your Chinese Assets?

Right off the bat, it is important to point out that this article refers to simply selling assets that you currently hold as opposed to short selling. When it comes to short selling in general and short selling Chinese assets in particular, there is a separate article dedicated to just that on our website, one

05
Feb

Corruption in China: Temporary Roadblock or Long-Term Curse?

Not only is this article written from the perspective of ChinaFund.com’s managing partner (the managing partner of an entity with a hands-on experience in China which exceeds 13 years), it’s also written from the perspective of someone who grew up in Eastern Europe, in a country that became essentially (in)famous at the very least regionally

04
Feb

Nepotism in China: Nuisance or Disruptive Factor?

Western investors have varying reactions to… let’s call them certain Chinese realities. Issues pertaining to nepotism most definitely do not represent exceptions. It ultimately does depend to a significant extent on their country of origin. To give a few examples pertaining to Europe: someone from Northern Europe may find any kind of nepotism unacceptable, a