1, a ton of reports out that china has bottomed and lot economic news that the economy should accelarate next year- a lot of talk that you could see China lead the world next year and could be up 10-40%-CNBC article-google it
2, report out that china will be a bigger economy than USA by 2016.
3, Paul gillis reports PCAOB making progress and hopefully an SEC deal soon. The main blockbuster deal if it happens is China gets rid of VIE and just have direct ownership in chinese companies. The China SEC would regulate all Chinese companies and could lead to dual listing in china and USA- Most Chinese-HK trade at 3-10X higher value than USA-In which one of the reasons about 35-45 Chinese companies will go private. Dual listing would be better
4, very important- YY.inc has priced its IPO around 10$ with MS- this is the first Chinese company to go public in like 18months and it shows big money is starting to warm up to the sector. If this is good ipo should be great for the sector.
5, big money is completely underweight the Chinese group- If these factors turn positive next year you could see a huge money flow into the sector for the like the first time in 2-3 years-PRAYING-ha
jtech, if you could elaborate on the VIE situation it would be a big help! If this were to happen when are they anticipating it? This would be huge for most Chinese companies listed here. About money flow into China, Buffet is a big buyer of Chinese companies now. Thanks for any information.
also- China small caps still have massive moves- CALI gone from 1.70-5.50 in 2 days-so your still getting massive moves in the group but lot the key do the stocks hold verse real money coming in the sector-rcon-clnt-today
We are early in the game which will probably last 10 years so nobody in this board will really care .
1, your having a trend from china going from export dominated economy too a consumption one which I truly believe is in place - a great friend just came back from China and he says this trend whether it's iPhones - retail - consumer is already capitalism and the trend is going forward that will change the world . That's the great part.
2, the tough part are the CEO 's and Company all have napoleon complex and are generally complete #$%$ more concerned about their 5'4 foot
Height complex control than any shareholder . They will rather go bankrupt than merge or sell to another company and regard shareholders as second class citizen . this is main reasons all Chinese stocks not just efut trade at 200-500% discount from normal value and they will forever until they start caring about shareholder value not their 5'4ego . The big thing I look is if china wants to get real they need direct ownership in china companies not vie structure . Direct ownerships gives shareholders natural rights like electing board members , hostile takeovers , proxy iniatives kind of normal stuff that keeps stock values at normal levels . When you DON'T have them stocks trade at 200% discounts like efut and all Chinese companies . I still think efut structure , management is better than most Chinese companies but no where what we need to get normal value -