Asia links 25 Mar 2021: Answering reader questions
I will do something slightly different this week. Instead of writing about recent insights I will tackle a few questions I have received from you readers.
I appreciate every single comment that I have received and I will answer all of them. You can also reply to this e-mail or ask me questions on Twitter’s direct messaging platform, accessible through my profile @Fritz844.
Question #1 – Fraud is rampant in the Chinese stock market, could you point to a few good corporates?
Yes. Fraud is rampant in China, especially among privately owned small caps. Look for those stocks that have repurchased shares at low levels and where insiders have been buying stock in the open market. A few such companies include Tencent (SEHK: 700 — US$764 billion), NetEase (NASDAQ: NTES — US$71 billion) and Sino Biopharm (SEHK: 1177 — US$20 billion). Look at the historical holdings of David Webb because he does deep research into the corporate governance of the stocks he owns. Almost all SOEs have powerful paren…