Why Chinese Stocks Are Technically Worth Nothing

Investors have grown weary of the Chinese stock market over the past few months in light of recent government crackdowns on the tech and education sectors. But there is one thing many investors are overlooking which could potentially pose a much greater risk to US-listed Chinese stocks. It is technically illegal to foreign investors to own stakes in Chinese companies. Companies get around this using the VIE structure. Unfortunately, the VIE is illegal under Chinese law and the government could theoretical deem them void and render all US listed Chinese stocks as worthless.

#EconomicOutlook

Видео Why Chinese Stocks Are Technically Worth Nothing канала The Economic Outlook