Lion-OCBC Securities Hang Seng TECH ETF

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Actually just to say that the Structure incorporates the government... which is why there's VIE/ WOFE structure, NVDR in Thailand, tax structures, holding company structures for control, or even corporate laws structures including bankruptcy or sovereign reciprocity agreements for different jurisdictions.

So yes government and regulation is very important part of Structure besides being a wrapper or how cashflow moves. But usually Structure is overlooked and not important until it is the most important. Draconian binary policy changes are excluded cause one can't forecast that structural change. Actually even if majority owned, one has to look at the majority owners' incentives. For SOE their purpose might be too secure resources or public goods rather than profitability.

Frankly fixed Income guys look at Structures more in depth than equity guys.

(25-10-2022, 11:15 PM)CY09 Wrote: On top of Specuvestors' Asset, Business, Structure. We need to add in a fourth variable- 'government'. Politics, politics, politics.

Never invest in cheap fundamentals when politics play a part. A simple tweak in policies has resulted in a company's earnings to halve (look at Alibaba/Tencent) or even 90% (the online education sector); post policy change

On an international stage, never think of investing with China unless China is taking a majority stake. Singapore has been burnt twice- one the suzhou industrial park investment, temasek's investment in China companies just before the policy changes for online education and the clamp downs. Hope some Ministers or senior civil servants are reading this
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Putting curted revenues aside, it is a reality that more employee benefits will be the norm moving forward. Topline and bottom line will probably not be looking good.

Chinese e-commerce giant to cut pay for 2,000 senior managers amid efforts to boost housing, education benefits for workers

“This is to ensure our JD brothers have our solid backing and ensure that under no circumstances will their family return to poverty,” Liu wrote, signing the internal email as “your brother Dong”.
On one hand, the tech giants are trying to heed the "common prosperity" call, while, on the other, some firms do not seem to be doing enuff ....

Not easy for a huge country .....


Huge Foxconn iPhone plant in China rocked by fresh worker unrest
"....The trigger for the protests, which began early on Wednesday, appeared to be a plan to delay bonus payments, many of the demonstrators said on livestream feeds. The videos could not be immediately verified by Reuters.

"Give us our pay!", chanted workers who were surrounded by people in full hazmat suits, some carrying batons, according to footage from one video. ...."
(23-11-2022, 10:08 PM)dreamybear Wrote: On one hand, the tech giants are trying to heed the "common prosperity" call, while, on the other, some firms do not seem to be doing enuff ....

Not easy for a huge country .....


Tech giants have the most visibility, also poses the most "threat" to the Chinese government.

Hence, "recovery, if and when it happens, will be K-shaped".
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger

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