Chinese Economics Thread

[Gatekeeper]

"Political spin" yeah sure..

Yes it is "Political Spin" that the Chinese regulator "shot" the Chinese Company just some days after it's US IPO raised $4.4 billion dollars. No, let me fix the wording, it's IPO defrauded the investors.

As the "very stable genious" Trump said: see you in court.
China's credibility and image dragged through the mad once again by the timing of this move.

Lets see how the US Stock Exchanges, the IPO Underwriters, the investors and ultimately the US Gov will respond now.
Make no mistake this is fraud against the US investors.

Say what you want about "Political Spin" and all your nice dreams but this is fraud and theft of US investors. The US Gov will certainly react.

In the coming days, lawsuits will be flying everywhere.
Let me say though who will ultimately NOT lose money, thats the IPO underwriter, Goldman Sachs. This company never loses money lol

@Gatekeeper do you have any comment on the economic aspect of this

@KYli you have a point on that all the Chinese tech companies were under the microscope but the signals for DiDi were not many. This thing came up straight out of the blue. IMO the regulator should had been much more forthcoming and transparent on this. We will see what happens on Tuesday.

And the speculation about ignoring the regulator and proceeding with the IPO shows how lax the enforcement has been for these companies. They have no respect. I will say it again, the action was correct but the timing is horrible for the optics. This has escalated to a serious mess for China now. Who knows what more restrictions will fall on Chinese companies from the US now

The US IPO has been known for a long time. The regulator has no excuses for not announcing it before the IPO happened when it saw that DiDI was proceeding with the IPO

See my reply on the breaking news thread.

I'll just add it is wrong to say it's a fraud against U.S. investors. No one is forcing the U.S. investors to buy shares in Didi. They do so because they think it's a quick buck to be made. Also, just like any investment, the calculation for risk would have included political risk. And therefore already discounted for pricing. The U.S. investors didn't go in blind. They are not that armature.......... or are They? In the end, it's just pure greed.

To quote a famous film. Wall street I think from memory.

"Greed is good"!

 

[KYli]

Does anyone know what's going on with Binhai?

Usually I'm apprehensive about the western "ghost city" claims but this one seems a bit worrying. It's been years since the HSR, metro rail have been completed and we haven't heard of any economic success like with Shenzhen and Shanghai despite having the same sea access.

I hope it succeeds though, it has a really nice Manhattan/Tokyo vibe

Don't really need to worry about Tianjin. It is strategically located and has accessed to Bohai Sea. Due to corruption and overinflated and overstated growth rate and over-leveraged, Tianjin is under tremendous economic pressure to put an end to any debt fuel growth. That's why Binhai development has been slow down. However, many major state owned companies have already moved in and occupied many of Binhai's industrial parks and office towers. It would take time but a decade from now, Binhai should be fine.

 

[Nobaron]

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This is interesting one.

 

[KYli]

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[FangYuan]

delete

 

[Abominable]

"Political spin" yeah sure..

Yes it is "Political Spin" that the Chinese regulator "shot" the Chinese Company just some days after it's US IPO raised $4.4 billion dollars. No, let me fix the wording, it's IPO defrauded the investors.

As the "very stable genious" Trump said: see you in court.
China's credibility and image dragged through the mad once again by the timing of this move.

Lets see how the US Stock Exchanges, the IPO Underwriters, the investors and ultimately the US Gov will respond now.
Make no mistake this is fraud against the US investors.

Say what you want about "Political Spin" and all your nice dreams but this is fraud and theft of US investors. The US Gov will certainly react.

In the coming days, lawsuits will be flying everywhere.
Let me say though who will ultimately NOT lose money, thats the IPO underwriter, Goldman Sachs. This company never loses money lol

@Gatekeeper do you have any comment on the economic aspect of this

@KYli you have a point on that all the Chinese tech companies were under the microscope but the signals for DiDi were not many. This thing came up straight out of the blue. IMO the regulator should had been much more forthcoming and transparent on this. We will see what happens on Tuesday.

And the speculation about ignoring the regulator and proceeding with the IPO shows how lax the enforcement has been for these companies. They have no respect. I will say it again, the action was correct but the timing is horrible for the optics. This has escalated to a serious mess for China now. Who knows what more restrictions will fall on Chinese companies from the US now

The US IPO has been known for a long time. The regulator has no excuses for not announcing it before the IPO happened when it saw that DiDI was proceeding with the IPO

American investors, American public opinion and American money are not as important as you think they are. I understand you may be Eastern European (apologies if you are not) so I see why you're stuck in a post cold war mindset.

The Chinese government is accountable to its citizens, not US investors or Chinese companies.

This is different to the west where giant corporations run governments.

Companies like Tesla and Amazon treats its workers like slaves, yet Bezos/Musk are viewed as great people in the west.

In China if a billionaire acts out of public interest, they get thrown in jail. That's what happened to Jack Ma, and should happen to whoever the CEO of DiDi is if the charges are true. American IPO or not.

It would also happen to Musk and Bezos if the American government cared about its people.

 

[Team Blue]

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This is interesting one.

The sheer amount of savings Chinese have compared to most other people is massive. If and when the PRC does allow for it to be used more freely it will have a huge impact.

 

[Strangelove]

The sheer amount of savings Chinese have compared to most other people is massive. If and when the PRC does allow for it to be used more freely it will have a huge impact.

The Comprehensive Agreement on Investment (CAI) with the EU was supposed to partially open up China's asset management, insurance and equity brokerage markets to European firms, which having spent 2 decades in a saturated & mature home market, are just drooling at the prospects of Chinese money.

But the Europeans fucked themselves with EU parliamentary virtue signalling and stupidity in eating up US fake news.

 

[hullopilllw]

The Comprehensive Agreement on Investment (CAI) with the EU was supposed to partially open up China's asset management, insurance and equity brokerage markets to European firms, which having spent 2 decades in a saturated & mature home market, are just drooling at the prospects of Chinese money.

But the Europeans fucked themselves with EU parliamentary virtue signalling and stupidity in eating up US fake news.

Which is probably a big mistake ? I dont ever see Chinese financial firms getting a chance at US & EU capital markets.
And that is not even considering the danger of allowing chinese savings to work for US capitalist(Wallstreet) interest.

 

[voyager1]

Which is probably a big mistake ? I dont ever see Chinese financial firms getting a chance at US & EU capital markets.
And that is not even considering the danger of allowing chinese savings to work for US capitalist(Wallstreet) interest.

Its not a mistake. Chinese financial firms are horrible at this business. They are extremely uncompetitive. Thank God that China is opening its financial market for US financial firms.

People in the know, understand how bad these Chinese companies are. Foreign expert companies are urgently needed in order to promote the development of domestic companies

This is the same case as when China allowed Tesla inside China in order to push the Chinese EV companies to develop.