Chinese stocks are uninvestable for long-term investors because the value created goes to the Communist Party, not shareholders. The Chinese index is down 16% since 1991 while the S&P 500 rose 1,570% and the Nasdaq 3,440%, and Alibaba has gained just 27.8% in 12 years since its IPO. When companies grow too strong, the party hits them with megafines, sidelines founders like Jack Ma or blocks game releases as at Tencent, and foreign investors own only VIE contracts, not shares. x.com  x.com  x.com  … Show more

Emerging-market equities, especially China and Latin America, are early in a multi-year rotation away from the US, with better macro, faster earnings growth and cheaper valuations. The US is taking on EM traits, including strikes amid nuclear talks, attacks on Fed independence and big deficits, yet keeps a premium. EM earnings may grow 21%-29% versus 13%-14% in the US, Brazil trades near 9x CAPE, and US institutions barely own China. The Hormuz-fueled commodity super-cycle adds to it. x.com 

Chinese equities, including Alibaba and KWEB, look set for a rapid reversal: after months of profit-taking and decade lows in many names while US markets reached highs, this morning's inflow is a positive sign. There is still value in many of these names. x.com 

China large caps have one of the worst charts out there, and sooner or later the rest of the world will impose heavy tariffs on China, raising the question of what Beijing does when it gets desperate. x.com 

ACM Research carries binary China risk: China is about 97% of its business, and authorities could stop it any day, forcing management to choose between San Jose and China. The CCP's threats toward other countries make that exposure uglier, whatever the company's $4B revenue ambition. x.com  x.com  x.com 

China tech stocks could rally as an underappreciated Trump visit to China nears, with almost no one talking about it. China tech earnings are also on deck, and some of the money that rotated out of China into Korea and Japan might start flowing back. x.com 

Chinese internet stocks remain a poor investment because the government treats successful companies as Communist Party vehicles when convenient. The KWEB fund is flat after 13 years while inflation rose 43%, and nearly every company hyped as the next Google disappointed; Beijing forced Jack Ma out and takes from firms that earn too much. China's population is shrinking fast and per-capita spending power is lagging, so capital is better deployed in the US, then Latin America and Southeast Asia. … Show more

Futu shows the regulatory risk of investing in China, which is why Sea and Grab, with little China exposure, are preferable. Futu fell 40% on a Chinese government investigation. Such episodes usually look scarier than they turn out, and Futu has been dealing with Beijing since 2021, so investors should not be surprised; the key is limiting exposure. x.com  x.com 

Chinese internet stocks could draw renewed attention and a re-rating as President Trump's May visit to China opens a brief honeymoon in US-China relations. Recent geopolitics have left China in a relatively favorable position, the sector sits near a relative bottom, and its largest holdings' fundamentals keep improving. The sector finally moved on Trump's arrival in Beijing. If the talks go well, strength can continue; if they go badly, it will likely fall back and the position would be exited. … Show more

Hesai is a sell because Chinese companies do not follow US accounting standards or enforcement, leaving financials less transparent and harder to verify, a risk most investors underappreciate. x.com