Okay, so this is take two of this video. The first take. Apparently i had my son in the backseat and you all could see him. I like to keep things private, so i have to redo this video.
So let me explain what just happened with chinese talks. Alibaba tencent up 25 chinese government basically came out today and said: hey we're going to behave, we're sorry, we cheated on you, but we're going to be faithful from here on trust us we're going to behave. We got you back now. I don't know if you ever had a you know a cheating spouse, but it's very hard to rebuild the trust after something like this and uh.
I don't know if i would have you know, put my money on based on a promise by somebody who lied and cheated before, which is the chinese government. Now, let's talk numbers here, basically, what's going on right now you have a lot of money on the sidelines. People are anxious, there's so much waiting. You know it's like a cocked gun just waiting to release.
They just need a little bit of good news to blow their load, and the chinese government played that to perfection. I think they knew about that. They knew about all the money parked on the sideline. They came out with a statement that basically says nothing.
All it says is hey we're not going to be actively trying to get u.s companies delisted. Sorry, chinese companies delicious from u.s stock exchanges. In fact um. You know we're going to try and help as much as we can whatever that means.
The other thing they said is - and you know what we're almost done with our own internal purge of the tech companies in china - we're almost done we're going to be done real soon. So the audacity you know, no, no, they didn't even say we're done. They're saying we're going to be done soon, which means there's more damage to be to be had, and basically that was enough to send people basically buying chinese stocks. Now, look you might make a lot of money on this swing.
Who knows some people might make obscene amounts of money on the swing, but here are some actual factuals. Here are some undisputable facts beyond the fact that china really didn't say nothing beyond the fact that i wouldn't trust their word that they're gon na behave to invest. My money, beyond all that, let's just speak, facts factuals, so did this statement by the chinese government change in any way shape or form the things that we were concerned about. As far as china goes because we were concerned about the vi structure which i'm going to talk about in a second, we were concerned about the lack of rule of law in china and we were concerned about the way the accounting is being audited in china.
Basically, three things number one via structure by law, mother lover by law: china prohibits you as a foreign national to own chinese talk just you know so by law. China says you're, not good enough to hold our stock. That's why any foreigners that invest foreign chinese that invest in chinese companies? They do it through a vie structure, basically buying contractual rights in chinese companies through some offshore uh shell companies in the cayman islands. Now that hasn't changed so you're still buying contractual rights. I wouldn't pay for contractual right. The same thing for, for you know for property rights, they're completely different in nature and risk. The other part is the china reform. It's a legal system.
Do they have now rule of law and the arts? You know the government is less communist and less centralistic. Obviously, no, and mainly look do you trust the numbers coming out out of the chinese companies as far as the financials. As far as the accounting i mean, the numbers are just as good as uh. You know lacking coffee evergreen.
I mean there's a reason why chinese companies are actively trying to avoid getting audited by u.s standards. That's the whole reason they're talking about delisting them. Now i don't trust their numbers until further notice and until they're going to come out and say: hey, no, more vi structure, you can invest in chinese companies and until they're going to say, hey we're going to subject ourselves to u.s auditing standards on our accounting and Until they're going to reform their system, so no more billionaires get kidnapped and no more companies get cancelled on the whim of a bureaucrat. It's not good enough for me, but hey you do you might be just the ramblings of a madman.
No, what do i know? Just my opinion might be wrong might be completely inaccurate. You know if you like alibaba and then said, go crazy, but as a long-term investment. The chinese government statement means nothing for swing traders this paradise, but for long-term investors meaningless, it's a head fake. My guy be careful.
By Stock Chat
where the coffee is hot and so is the chat
Or… you can be wrong
Chinese gov wants everyone to invest in chinese market so that china gets rich and can support russia on the war against US. Then even if US retaliates with santions it wont cause much trouble to russia and china. Nobody should invest in china.
If they can fix their stuff it will be great. Me I'm with you this needs clarification and I smell a trap incoming.
Mr Tom please please don't be fooled, the last 12 months was communicated that the 3 red lines "RRR" would wind down their markets. VIEs are dangerous at mentioned, but ADRs must be upheld else the global markets are a complete farce. Is one of the few hedges I have against US inflation/recession.
Much respect, regardless of market moves.
Thanks again for reuploading this video and for your insights, as always. Totally understand wanting to have some privacy
Sounds like he doesn’t own Chinese stocks
Sorry for pointing out your kid. What a good dad! Proud of you man
Enron is from US. they collapsed too.
Needed a good laugh. Tks…
With large scale lockdowns in China, it's not really surprising that Chinese tech stocks are up!
grabs popcorn, waits patiently for CCP rug pull 😆
Little kids chasing Chinese lies….. Heard!
Play on boys, get wrecked
Something must have upset the delicate balance of control and power on the "Free market" in china. I wonder what.
I don’t trust a single word from Chinese gov’t
Lol, yeah, I noticed he wasn't camera shy 😅
All the news is mostly BS, it's just government whales manipulating the market.
BLOW THEIR LOAD LOL – you're the best Tom!!!
I told you, buy the faking dip!
Chinese govt hardly flip flops more than American politicians and regulators. we have US congresspeople thinking apple and google are evil and should be broken up or overregulated, even trying to appoint SJWs to their boards, then forget their priorities when the next big media mess happens
You should go and watch the video on CNBC channel to see exactly what they said. Not exactly what you describe. Way more details.
Shut up I'm an owner of Xpeng! I actually agree with you mostly. But Xpeng growth is incredible. So shhhh please.
Chinese govt says they are dialing down the oppression on their finest. It's critical for the Chinese companies to be investable again so wall street lobbyists will ask White House for kindness to CCP
Yes, you are right!
Yeah I'm not buying Chinese stocks no matter how much upside they have. When you are dealing with the CCP then there is no trust whatsoever.
If they cheat once they’ll cheat again…
Ok, thanks for clarifying. In these days I perfectly understand your need to keep your kid's privacy. I was waiting for your 2 cents.
No the Chinese is not going to behave and abide with US auditing standards
Glad is was just a kid issue…I thought, "Muther Lover, what did he say to get taken down?"
Go look at the fundamentals of Alibaba. Irregardless of the Chinese government, Alibaba is such a steal at the previous market cap that it doesn't even matter if they have a great wall of China in front of them.
CCP uses its whole claw to bop up the price, if anyone still believes the CCP stock, good luck for them.
This is not surprising – it is capital flight to safe havens. The same thing will happen in the US. The big issue for all this money is that there are not a lot of good options to put it to work. Last times this happened there were tech booms due to huge amounts of venture capital becoming available (large amounts of $$$ makes VCs less picky….), we'll see. Good for the US and other safe havens, my guess is that a certain pool of investors see China as safe or have no choice but to see China as safe….
Folks who bailed on evergrand are finally reinvesting?
yes