Wednesday, June 14, 2023

Expect adverse selection for investments in China

From the Economist:

"[The crackdown on] Mintz, Bain and Capvision struck a nerve in foreign boardrooms because they targeted the investigators, consultants, lawyers and other advisers on whose expertise outsiders ... [depend on] order to understand whom they are doing business with, to identify any hidden risks ...
The Communist authorities have always looked askance at such work and put in place rules on data-sharing and state secrets that, if enforced, could be used to curb it. Practitioners report that this year enforcement has become much more common. In areas like Xinjiang and chipmaking corporate investigations now appear entirely out of bounds. ...
The crackdown on analysts who provide info on Chinese firms to foreign investors will result in what Chapter 20 calls "asymmetric information" (Chinese firms know what their prospects are, but US investors do not).  With less information (e.g., "A few Chinese analysts working for foreign companies have been visited by authorities and pressed to present a rosier image of China"), foreign investors should expect Adverse Selection, i.e., not invest in Chinese Firms or, if they do, anticipate adverse selection by assuming the worst.  

2 comments:

  1. RECOVER YOUR SCAMMED BITCOIN WITH ULTIMATE HACKER JERRY.

    Hello everyone, I was a victim of bitcoin scam, I saw a glamorous review showering praises and marketing an investment firm, I reached out to them on their terms of investments and invested $155,000 which I was promised to get my first 15% profit in weeks, when it was time to retire my profits, I got to know the company was bogus, they kept asking me to invest more and I ran out of patience then requested to have my money back, they refused to answer nor refund my funds, not until an old family friend introduced me to Ultimate Hacker Jerry, I reached out and after submitting my case, Ultimate Hacker Jerry was swift to action and within 36 hours I got back my funds with the due profit. I couldn’t contain the joy in me. I urge you guys to reach out to Ultimate Hacker Jerry on their support email:  (Ultimatehackerjerry@seznam.cz)   or WhatsAp  +1(520)2 827151  ).
    don"t forget to mention Luke Curry Recommended you.

    ReplyDelete
  2. I am really appreciative of CYBERETRIEVE's assistance in getting my stolen tokens back from a dishonest cryptocurrency investment broker.I had invested about three months ago,after investing I observed my investment rise gainfully.My decision to withdraw was the beginning of my issue.I knew it was my mess and I had to clean it up myself,so I did my research and found three recovery experts online with good reviews.I was hit with fee after fee,and when I was unable to pay any more,my account was blocked.The only assistance I received from the FBI and local law enforcement was to stay off the internet and not to get my money back.I spoke with all three and received three options,from which I selected the best one.and chose to collaborate with CYBERETRIEVE.CYBERETRIEVE stood out from the others for some reason.My instincts were correct,and (cyberetrieve@mail.com) was able to retrieve every penny I had lost.I'm not sure how he did it,but I'm glad he helped me during my most trying time.His professionalism and de endability got me through that ordeal.CYBERETRIEVE is one of the few hackers that uses its hacking skills to assist victims of online scams.CYBERETRIEVE is trustworthy;you can reach him at the email address above or over Telegram:@cyberetrieve for assistance with your current issue.
    I'm grateful,CYBERETRIEVE.

    ReplyDelete