The question is, do you think the CPC would ever forcefully take over ALL of the company? I could see it being much safer and investment that anything in the west. Unlike here the CPC actually punishes people for fucking with the market and ban manipulative short selling. I just don’t know enough to know if it would be safe in the long run. I don’t think they would actually do anything to fuck over the people invested since most of them would be Chinese citizens most likely but like I said, idk. There’s also the issue of what happens if trade wars and shit gets worse and then one day the US says “sorry no trading stocks on Chinese markets.” Which honestly I feel is a far more likely scenario. At least, they would do that to individual investors. I’m sure the banks and wallstreet would be granted exception.
The issue with evergrande was they were being used by western banks to launder money and as collateral for “risky investments.” Evergrande was completely unsustainable and last I check the CPC said they would not be stepping in for any bailouts. I do not know if they took over or not. I support their takeover of any business if the purpose is to remove it from capitalist hands. Even more so if the plan is to relinquish control to a worker co-op/union structure.
But in answering the other users question one has to weight the risks on investing in this situation. If the CPC takes the company without reparations to any of the share holders then you gonna get burned. But from the few instance I personally know of (which honestly my knowledge is lacking) it seems they typically only take over when the business is either doing something super sketchy or has failed completely
The question is, do you think the CPC would ever forcefully take over ALL of the company? I could see it being much safer and investment that anything in the west. Unlike here the CPC actually punishes people for fucking with the market and ban manipulative short selling. I just don’t know enough to know if it would be safe in the long run. I don’t think they would actually do anything to fuck over the people invested since most of them would be Chinese citizens most likely but like I said, idk. There’s also the issue of what happens if trade wars and shit gets worse and then one day the US says “sorry no trading stocks on Chinese markets.” Which honestly I feel is a far more likely scenario. At least, they would do that to individual investors. I’m sure the banks and wallstreet would be granted exception.
They should.
Actually, didn’t they do that with Evergrande? Now all their properties are public?
The issue with evergrande was they were being used by western banks to launder money and as collateral for “risky investments.” Evergrande was completely unsustainable and last I check the CPC said they would not be stepping in for any bailouts. I do not know if they took over or not. I support their takeover of any business if the purpose is to remove it from capitalist hands. Even more so if the plan is to relinquish control to a worker co-op/union structure.
But in answering the other users question one has to weight the risks on investing in this situation. If the CPC takes the company without reparations to any of the share holders then you gonna get burned. But from the few instance I personally know of (which honestly my knowledge is lacking) it seems they typically only take over when the business is either doing something super sketchy or has failed completely