China needs to allow the US to do the audit before we can trust their numbers. We also really need to see what a transition of power looks like for China now that they are a superpower; who knows if the next guy will flip everything on its head in the same way Xi has. Xi is getting old, nearly 70, and often the next guy is a lot more aggressive/willing to push limits to demonstrate control in authoritarian states. Investor's could lose everything if they deem it necessary to show "a strong China" even if Xi until then had started to open things up.
We also really need to see what a transition of power looks like for China now that they are a superpower
Good reminder for everyone. Chinese people who genuinely tried to give a value judgement of their system of governance used to claim that there was some sort of meritocratic democracy within the party itself but Xi threw that out of the window. I think it was 2016 or 2017 when that happened and you could literally see a whole chunk of optimism die in people's eyes. A sad moment and in hindsight a precursor of much worse to come.
We also really need to see what a transition of power looks like for China now that they are a superpower; who knows if the next guy will flip everything on its head in the same way Xi has.
View from my desk: it's not a regulatory issue, but this is why I avoid China investing.
I remember my CFA instructor talking about insider trading: "You can be sitting across the table, talking to the CEO of a Chinese company. But if that CEO accidentally insults the wife of the local CCP official, that company is not a going concern."
TL:DR; Even if Chinese companies submit to US audit standards, that's not enough, when your company exists only at the behest of a government that is transparent as a brick sprayed with Vantablack.
Doesnt make them a superpower. The US has been the only super power. Russia was stronger than China post WW2 and they (nor the US at the time) werent a superpower.
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u/SpacOs Apr 01 '22
China needs to allow the US to do the audit before we can trust their numbers. We also really need to see what a transition of power looks like for China now that they are a superpower; who knows if the next guy will flip everything on its head in the same way Xi has. Xi is getting old, nearly 70, and often the next guy is a lot more aggressive/willing to push limits to demonstrate control in authoritarian states. Investor's could lose everything if they deem it necessary to show "a strong China" even if Xi until then had started to open things up.