This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chinese-Stock Bashing Will Cost Investors: Poll

Yet another investor noted that in 2009, 630 U.S. companies reported 674 accounting problems requiring earnings restatement, so anyone making the case that there is inherent accounting risk in Chinese stocks is crying foul without supporting evidence.

Some investors make the case that the investment rationale for buying Chinese stocks is simple, and is in fact bolstered by the value compression that is common as a result of perceived risk relative to "trustworthy" Western companies. The Chinese stocks have low price to earnings ratios because of the market prejudice and high growth potential, and these factors make not investing in Chinese stocks a risk investors cant afford to take.

By the poll numbers, this argument found the most support. Roughly 61% of survey respondents think that the perceived lack of credibility in Chinese corporate management is nothing more than a market prejudice; a stock is a stock is a stock, regardless of nationality of management, was the majority opinion.

Approximately 39% of survey takers don't trust Chinese stocks.

Not a majority, but a significant representation of the uphill battle for Chinese stocks, nonetheless. Yet just how much of this doubting 39% represents investors who don't have the Chinese stock risk gene, versus those investors who are actively trying to drive down the value of Chinese stocks, is an argument for another day.

"It's bashers and shorters and that's just made an opportunity now to acquire a nice basket of stocks," commented one reader to TheStreet.

-- Written by Eric Rosenbaum from New York.


2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CSKI $0.06 -75.00%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs