@truthseeker1, thanks for the compliment. Truly appreciate it!
@ks55, all these accounting frauds can happen to any companies and not necessarily Chinese companies. In my article, I assume that there is no accounting problems or any other frauds in these companies. The only problem is the statutory regulation is hindering the companies from rewarding the shareholders with dividends. As a result, less institutional investors leads to less capital gain.
I read Star yesterday about 1MDB. No one should "pre-judge" its financial matters of the reviews by the Auditor-General(AG). 1MDB board said company accounts were audited by international audit firm Deloitte which has signed off 2013 and 2014 accounts without qualification. Similarly KPMG signed off the 2010, 2011 & 2012 accounts with no qualification.
Somewhat true. These Chinese counters may be fraudulent hence risky. On the other hand, another way to see it is these counters are truly value for money. In the long term, these shareholders can enjoy multiple folds of gains given their exceptionally cheap prices now.
But personally, I think no one really knows how long we have to wait to enjoy these returns. After all, many short term investments can be compounded which can beat the performance of a long term investment.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3359 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
truthseeker1
493 posts
Posted by truthseeker1 > 2015-05-17 13:06 | Report Abuse
A prejudice is always a prejudice. Someone don't read the blog and understand the contents. Good article from Shaun Loong.