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getrichdietrying (79.52)

Why I will never invest in China.

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April 06, 2010 – Comments (4) | RELATED TICKERS: SAYCY.DL , CELM , CHL

1, Dumping suspicious dead Baby bodies in the river. (Only someone with power in the government could have ordered it for other idiots to do this.) This is just an example of the mentality behind the majority of people in power in this Government.

2. Targeting anyone who questions there rule inside our outside China,

3, Their control of the Currency rate.

4. Outside Businesses interest in China, locally, heavily scrutinized, virtually a triathlon to get anything get business venture started as another "wall" appears to be setup against any non Chinese operating in their country. What is the word I am looking for for a people who fear all who are not like them, xenophobia?

5, Satyam (SAY) has had problems with falsified data and the government in that country opened it's investigation for others such as the US and other foreign interests to look and rectify the situation. They are also working together to set up new laws and regulations to help prevent such abuse again. So, my question to you who are hype China is; do you seriously think China would follow suit, and why has not one or more cases like SAY have not happened? It's logistically impossible for it not to happen.  Look at our own US history with Enron, Lehman Bros.., etc.

6. "Great Firewall," did the real world "Great Wall of China," work to stop marauders?

7. TRUST. No matter how many arguments we can all shout it comes down to this.

4 Comments – Post Your Own

#1) On April 13, 2010 at 2:49 PM, jdlech (< 20) wrote:

Very serious accusations.  #s 3 and 4 can work in your favor as long as you invest in companies founded in China - headed by Chinese.  #1 is largely irrelevant for the purposes of doing business - there are unethical, immoral or amoral people managing governments, organizations, and companies in all nations.  #5 is a concern for anyone - it is the main reason why one should do their DD very carefully with Chinese companies.  They may think #6 will work out, but it's effectiveness is only temporary, I'm sure.  There's really not much similarity between the great wall of china and the great firewall of china.  The former was designed to capture raiders on their way back from the raid.  The other has nothing to do with raiders at all.  It's like comparing the Apollo missions to the phalanx.

#7, of course, is more interesting - we seem to have just as much reason to distrust American companies as Chinese (Enron, Sub Prime Loan disaster, Lehman Bros., S&L disaster, Madoff, etc..)

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#2) On April 14, 2010 at 9:36 PM, getrichdietrying (79.52) wrote:

You are correct on all points, though, I must stress for #7 I have the freedom to question the companies in this and many other countries, try doing that with the rights afforded here, in that country; I will let you learn. 

As to #7 again last point, it is IMPOSSIBLE THAT NOT ONE CHINESE OWNED COMPANY HAS HAD THE SAME FAll OUT. "you are assimilated" the Borg or just can't stomach the truth. What if the "DD,"is a lie. Trust again.

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#3) On April 16, 2010 at 5:16 PM, stan8331 (94.89) wrote:

I think there are a lot of good reasons to be cautious investing in China, but avoiding any investment there whatsoever could be just as risky as over-investing.  The country is experiencing massive growth - the sort of growth that mitigates the risks detailed here, so long as Chinese equities are a relatively small percentage of one's portfolio. 

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#4) On April 16, 2010 at 5:26 PM, TheDumbMoney (59.34) wrote:

Folks, I think getrichdietrying's point is more of a moral argument, than a growth argument.  Today we found out that China has recently or is now trying to sterilize 10,000 people for violating the One Child policy.  Anyone who looks at my stock picks can see I have an amoral streak myself, but it surprises me somewhat that so many anti-government types in America appear to express few qualms about a regime that makes American government control and regulation look tame.  (Or is it that some don't care that China sterilizes people as long as they don't put environmental regulations on the companies you invest in??)  I think China is a great growth story, and have in the past owned chinese stocks, including PTR and Yanzhou Coal and Sinopec.  But anyone who doesn't think twice about investing in a stock partially owned by that government has a bit of a problem.  I'll invest there.  But that doesn't mean I'll always feel good about it.  Much worse than I feel when I buy shares of PM, XOM, MO, etc. (for which I don't feel bad at all, incidentally).

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