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Investing in China

15
Apr

Could China Fail?

This is perhaps the broadest but at the same time most difficult question that even die-hard China bulls are most likely plagued by… whether they are willing to admit it is an entirely different discussion. The bottom line is that at least in the back of your mind, no matter how optimistic you are or

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07
Apr

Is China Antifragile?

In light of how often the adversarial relationships between either China and the United States or China and the proverbial West are discussed, one might assume that China always stands to gain after negative developments in the United States and/or in the West. Antifragility is a term popularized by Nassim Nicholas Taleb (and which constitutes

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30
Mar

What If China’s Economy Stagnates? Economic Stagnation Scenarios Explored

Many investors are so accustomed to the idea that China’s economy has been “hot” (impressive YOY GDP growth rates, for example) for decades that they find the very idea that it might eventually stagnate apocalyptic. Would scenarios involving economic stagnation be catastrophic for China? Perhaps, but not necessarily. To be more precise, it would be

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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

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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

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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

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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

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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

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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

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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

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