How to Investigate a Chinese Company (in Reality)

Here’s my simple advice for individual investors who’d like to do some due diligence on a Chinese company:

Don’t bother.

You may be able to trade ’em, but “investing” in them is masochistic.  And don’t you ever in your life go believing a word they say.  This may change, but right now exaggeration and fraud in many China stocks is a systemic thing – it is Clown College out there, Barnum & Bailey stuff.

So do yourself a huge favor – Don’t go to China to meet the company, don’t hire a translator to pore over filings, don’t “construct a fraud scenario”, don’t read about which hedge fund managers are also investors and don’t take part in message board discussions about who’s lying and who’s legit.

Don’t play no game that you can’t win.

Read Also:

How to Investigate a Chinese Company (DigiCha)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. blazing trader commented on Sep 27

    … [Trackback]

    […] Find More Information here on that Topic: […]

  2. Kimber guns in stock commented on Oct 14

    … [Trackback]

    […] Find More on that Topic: […]

  3. orangeville real estate agents commented on Oct 16

    … [Trackback]

    […] Here you will find 36277 more Information to that Topic: […]

  4. cibc banking login commented on Nov 13

    … [Trackback]

    […] Find More on to that Topic: […]

  5. 7lab pharma store commented on Nov 13

    … [Trackback]

    […] There you can find 94423 more Info on that Topic: […]

  6. Intelligent automation solutions commented on Nov 14

    … [Trackback]

    […] Find More on on that Topic: […]

  7. commented on Nov 30

    … [Trackback]

    […] Here you will find 62538 additional Info on that Topic: […]

  8. wholesale monster energy drinks commented on Dec 21

    … [Trackback]

    […] Read More Info here to that Topic: […]

  9. usa dumps shop commented on Dec 23

    … [Trackback]

    […] Read More Info here to that Topic: […]

  10. rolex podróbka commented on Jan 22

    … [Trackback]

    […] Information to that Topic: […]