I personally never like investing in China companies, few of the
reasons I can think of is that firstly the company is in a foreign
country where they seem to have strange laws regarding disclosures
and protecting investors interests and rights as seen from CAO
debacle where main directors sold their shares prior to price
collapse and also how the country from top to bottom they seem to
encourage sharp business practices and frown on fair play by how
many singaporeans got burnt investing over there.
Secondly there is a credit crunch in china so they can't get bank
funding and they IPO here to raise cash, is there a reason why
couldn't get listed on shanghi or hongkong exchanges and have to
get it here instead? Their IPO other than raising cash and
improving market liquidity here brings no real value to singapore
in terms of employment creation.
Thirdly the mountains are high and the emperor is far away.
