via seekingalpha:
This is not the first time analysts have issued dire warnings against investing in Chinese stocks. From our standpoint as advocates of long-term investing, we too share the view that what qualifies as a high-quality investment, necessarily requires some level of visibility into future cash flows or prospects of the asset in question. When it comes to investing in China, though, the future is wildly unpredictable given the lack of transparency, weak accounting standards, and poor regulatory oversight. Worse, the fate of the Chinese economy is almost entirely dependent on the political aspirations of a single man, Chinese President Xi Jinping.
And Xi Jinping’s actions of late have been nothing short of disturbing for investors. Even former Morgan Stanley Chief Economist and long-time optimist of China, Stephen Roach, has recently issued warnings that China’s actions are signaling the early stages of a cold war.
Xi’s gotta have it — or whatever is left of it.
h/t SG