Home » Bear Case Scenario » New Risks Chinese Investment $PEK, $FXI, $EWH, $SINA, $YHOO, $BIDU, $TCTZF

New Risks Chinese Investment $PEK, $FXI, $EWH, $SINA, $YHOO, $BIDU, $TCTZF

Several Chinese companies are about to IPO in America. Mao Tse Tung’s grandchildren want to cash in some chips for western cash. Understandable we would all do the same. Weibo and Alibaba will issue IPO’s soon. Demand is strong. The market expects the IPO to increase making even more wealth for the lucky participants.

Once we get past that noise lets take a look at the fundamentals. The Chinese economy is difficult to fathom. Transparency is nowhere close to western standards. Everything is nuanced and has alternative meanings.

Following Weibo and Alibaba will give additional information into the true state of the Chinese economy. China may wish to manage the economy but these two companies will be providing some raw information. Watch for guidance and executive interviews; lots if tidbits will be falling off the table.

Just remember “Statistics is like a Bikini. What it shows is enticing. What is conceals is critical”

George Gutowski writes from a caveat emptor perspective.