Thanks for the interesting webinar. Are you aware of any major fraud case within a Chinese SOE? I wonder if a SOE has a lower chance of fraud occurence due to stricter checks and balances and potentially more severe punishment of perpetrators as compared with a private enterprise within China.
Hey Jake, no I think Chinese SOEs are much safer than private enterprises and that's partly why I personally favour them. I'm convinced that managers of SOEs sometimes milk them for personal gains though. By setting up distributors or suppliers, through kickbacks or through M&A transactions. That probably explains why their ROEs are on the low side.
Thanks for the interesting webinar. Are you aware of any major fraud case within a Chinese SOE? I wonder if a SOE has a lower chance of fraud occurence due to stricter checks and balances and potentially more severe punishment of perpetrators as compared with a private enterprise within China.
Hey Jake, no I think Chinese SOEs are much safer than private enterprises and that's partly why I personally favour them. I'm convinced that managers of SOEs sometimes milk them for personal gains though. By setting up distributors or suppliers, through kickbacks or through M&A transactions. That probably explains why their ROEs are on the low side.
Michael - this was really excellent. did you share the slides?
Thanks! Yes, here:
https://www.asiancenturystocks.com/p/monday-morning-links-2c6