Monday, August 2, 2021

Chinese Companies Becoming Increasingly Uninvestible

Underestimating regulatory risks facing Chinese companies.

After a tumultuous period for U.S.-listed Chinese companies, many U.S. investors are finally concluding that Chinese companies aren't worthy of a place in their portfolios.

For the uninitiated, many prominent Chinese private education companies are listed in New York, including New Oriental Education, TAL Education Group, and Gaotu Techedu.

China banned IPO listings of and ownership in such education companies by foreign investors or other publicly traded entities.

Among the three major Chinese tutoring companies listed in New York, their investors have lost a combined $18 billion in value since July 22.

Investing in Chinese companies is different than investing in almost every other market.

Outside of companies in obviously precarious industries such as gambling or vice, investors certainly didn't consider a company's viability in such a manner.
 

https://www.theepochtimes.com/chinese-companies-becoming-increasingly-uninvestible_3927071.html 

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