The "Bent" Ledger - August 2022
China is in Deep Financial Trouble and other actionable insights
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In April 2021, we shared with our readers about the two coming wars, Russia with Ukraine and China with someone. Download a FREE report: War Drums.
October 2021, we shared with you what China was doing to foreign brands. As a result, many brands have been punished or just given up on the Chinese market.
In December 2021, we shared with you the full-scale slaughter of Chinese ADRs on US exchanges. The S&P BNY Chinese ADR Index was at 595 in July 2021, 466 in December 2021, and 367 on July 25, 2022. That is a drop of 55% from this time last year and 21% since we published the article. The number of Chinese ADRs was 261 at the beginning of the year but is now down to 250. The US and Chinese security regulators are far apart on a workaround, and unless one is found, all Chinese ADRs will be deleted in 2024. As one expert said, “The entire ADR vis vi and Cayman VIE is broken and cannot be repaired." Download a FREE report: Chinese Companies Listed in the US are in Trouble.
What is In This “Bent” Ledger?
Contrarian insights on the present geopolitical risk that will impact your portfolio investments. Did you factor the geopolitics into your risk portfolio?
Signs that China is in trouble
Ghost Cities: A Series of Defaults of Chinese Property Trust
China is Over-Leveraged - The Risks and Consequences
China’s Reaction to COVID Rippled Through The Market Worldwide
Recommendations - A must-read for investors
So, what are the signs that China is in trouble?
Corruption led and continues to lead to vast overbuilt ghost cities; some do not even have ghosts. Most of these cities were financed by SOE Banks directly or using Wealth Management Products sold to investors.