China shuffle

In support of Saul’s Chinese stance there is a new Netflix documentary called the “China shuffle” that talks about all the frauds and all the effort to educate Americans, government and SEC to no avail.

It discusses one of the fraudulent companies that was even recommended by TMF way back when in 2008ish.

Two things of particular interest are: at the end of the documentary it lists who the person Trump appointed to oversee SEC and his relation to Alibaba.

And point #2 I stumbled over was the motley fool 100 etf TMFC which only includes companies that are incorporated in the US. It was a smart rule they made and I wonder if this allows them to avoid future issues as no Chinese company can be included ever, as I understand it. You won’t find Alibaba, tencent, baidu or jd.com

Make your own mind about investing in China but don’t assume you have the traditional safety net because they are trading on American exchanges.

6 Likes

Make your own mind about investing in China but don’t assume you have the traditional safety net because they are trading on American exchanges.

I had far more 100% investment wipeouts due to corruption and lack of transparency and regulatory oversight investing in the UK than in China. My count of China wipeouts on that front matches my count of US wipeouts.

Ant

2 Likes

On the other hand, as at the end of March, Motley Fool Funds holds investments in the following Chinese companies:

Global Opportunities Fund
Tencent (2.81%)
Ctrip (2.15%)
Yum China (1.63%) (American company that only does business in China)

Emerging Markets Fund
Tencent (6.48%)
Ctrip (4.22%)
Yum China (4.07%)
Ali Baba (2.50%)
Baidu (2.22%)

You won’t find European, Canadian or Latin American stocks in the Motley Fool 100 index, either, despite companies from these regions being recommended by one or other Motley Fool stock picking service. Perhaps TMF wanted to keep the index a US index?