{"id":55859,"date":"2021-09-27T18:23:14","date_gmt":"2021-09-27T22:23:14","guid":{"rendered":"https:\/\/www.technologyinvestor.com\/?p=55859"},"modified":"2021-09-27T18:23:14","modified_gmt":"2021-09-27T22:23:14","slug":"revisiting-china-stocks-how-theyll-save-evergrande-how-jeff-bezos-excels","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=55859","title":{"rendered":"Revisiting China stocks, How they’ll save Evergrande; How Jeff Bezos excels."},"content":{"rendered":"

Stinky day for most techs. But great for my running down-the-line backhand.<\/p>\n

I remain in tech. I have faith. I bought a tiny bit of FRSH and ESMT.<\/p>\n

In recent days, I sold CCI, GXO, ROKU, PTON, TDOC and ZM.<\/p>\n

China fascinates and confuses.<\/p>\n

My conclusion: The less my investments depend on China’s quirkinesses, the better.<\/p>\n

Item: Four leading Chinese stocks this year. Alibaba, Baidu, Tencent and JD. Horrible performance:<\/p>\n

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But also semi-horrible performance this year from two stocks with huge China involvement — Apple and Tesla. They both have done worse than my favorite Vanguard ETF called VGT (in red):<\/span><\/strong><\/p>\n

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China is different to the U.S. Of the biggest 25 companines in China, 20 are state-owned<\/strong>.\u00a0That’s an amazing statistic. Check out Wikipedia.<\/strong><\/a><\/p>\n

The best explanation of what’s happening in China is from today’s New York Times.<\/em>\u00a0Here it is. It’s engrossing:<\/p>\n

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Police and security personnel outside China Evergrande Group headquarters in Shenzhen, China, on Friday.<\/span>Credit…<\/span>Ng Han Guan\/Associated Press<\/span><\/em><\/p>\n

By\u00a0<\/span>Keith Bradsher<\/a><\/span><\/p>\n

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BEIJING \u2014 In any other country, the sudden collapse of a corporate titan with more than $300 billion in debt would send shock waves across the economy. Headlines would blare. Banks would shudder. Investors would panic.<\/p>\n

A corporate collapse of that scale may happen soon. But it would be in China, where the Communist Party keeps a firm grip on money, corporate boardrooms, the media and the broader society. Those controls may be facing one of their toughest tests yet, but Beijing is signaling that it feels up to the challenge \u2014 even if it will first try to teach big investors and companies a bitter lesson about lending recklessly.<\/p>\n

The financial world is watching the struggles of China Evergrande Group, one of the largest property developers on earth and certainly the most indebted. Last week, a deadline to make\u00a0an $83 million payment<\/a>\u00a0to foreign investors came and went with no indication that Evergrande had met its obligations, raising questions about what would happen if its huge debt load went sour.<\/p>\n

The Chinese government doesn\u2019t want to move in yet because it hopes Evergrande\u2019s struggles will show other Chinese companies that they need to be disciplined in their finances, say people with knowledge of its deliberations who insisted on anonymity. But it has an array of financial tools that it believes are strong enough to stem a financial panic if matters worsen.<\/p>\n<\/div>\n