Welcome to the China Board!

[HenryTo]

I'd like to welcome our subscribers/readers to "The China Board!" On this board, you will be able to exchange your ideas and views on nearly anything about China - economically, culturally, etc. Our main focus, however, is to exchange investment/trading ideas (whether long or short). No doubt, the financial markets in China today are still very underdeveloped - there are many dangers associated with investing in such a market but as the saying goes: "Where there is danger, there is opportunity."

Because the markets in China are still very underdeveloped, there are still many inefficiencies where one can "exploit" for a profit. This board is designed to help inform our readers to stay current on the Chinese markets. Over the next ten years, I believe my readers can benefit more by knowing about China and Chinese investments than they can by just focusing on the U.S. domestic stock market. Three reasons:

1) The U.S. stock market is so developed that it is very close to being efficient nearly all the time, except during bubble or post-bubble periods (1999 to 2000 and 2002) when asset prices were priced to extremely overvalued or undervalued levels. Moreover, who got to participate in the Google venture capital process?

2) Great inefficiencies in China still. I believe that in the next decade or so, U.S. high net worth individuals will be able to participate in the VC or IPO process in China if one starts learning about China or start developing the relationships right now. Because there are still great inefficiences, one can still find many bargains (or many frauds to short) when it comes to investing in China.

3) I am long-term bullish on China, even though I believe the China economy is now very close to over-heating. At this point, I will welcome a Chinese recession since it will present us to pick up Chinese assets at very good prices and then watch them go up for the next 20 years.

Times are going to get very interesting, indeed.

[spiderwang]

oh,now i see,thank u very much.and my opion will be mentioned in the message named 'THE TERRILBE BEAR BOARD IN CHINA'.There,u can find it.

[HenryTo]

No problem.

When I say that the Chinese markets are inefficient, I mostly mean that the markets in China are not as transparent as the ones here in the United States. Less regulations, less compliance, and less transparency. Information are also not as easily available on the internet.

On the demand side, the "investors" participating in the Chinese markets are generally not as educated financially as the investors here in the United States. There are also less professional investors in China and a signficant amount of them only choose to speculate, and not necessarily invest.

Because of this, I think the swings in the Chinese markets will be very wide going forward in the next two decades. Therefore, if investors can catch the bottoms of those swings and be informed about the better companies in China, I think we can make much more money in China than on the U.S. domestic markets. Let me know what you think!

Henry

[spiderwang]

Hello henry, my english is tend to 'Chinese English',so i can not profoundly understand the word 'inefficient' you mentioned,could you explain it more,thanks very mush.