How to Think About What’s Going on With Chinese Stocks; How to Make Smart Donations

How to Think About What's Going on With Chinese Stocks; How to Make Smart Donations

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More And some basketball talk.

The Security and Exchange Commission (SEC) is threatening to delist the American depositary receipts of several Chinese companies. Investors have a lot of questions. In this podcast, Motley Fool senior analyst Bill Mann discusses: Why China’s government is happy with the SEC’s threat.

How a quick and easy end to this impasse is difficult to see.

And he discusses how the NCAA basketball tournament can help make your approach to investing better and why hoops programs with a history of winning records resemble winning businesses.

Jennifer Gennaro Oxley, executive director of The Motley Fool Foundation, talks with Motley Fool host Alison Southwick and MotleyFool personal finance expert Robert Brokamp about how thinking like an investor can lead to better outcomes in your charitable giving.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video. 10 stocks that could be the biggest winners of the stock market crash

When our award-winning analyst team has an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

They just revealed what they believe are the ten best buys for investors right now… And while timing isn’t everything, the history of their stock picks shows that it pays to get in early on their best ideas.

*Stock Advisor returns as of March 3, 2022

This video was recorded on March 15, 2022.

Chris Hill: Why are shares of Chinese companies falling so much? How can the NCAA basketball tournament help you invest better? To March Madness, Motley Fool Money style. I’m Chris Hill, joined by Motley Fool Senior Analyst, Bill Mann. Thanks for being here.

Bill Mann: Hey Chris, how are you?

Chris Hill: The market’s up at this moment, so everything is great.

Bill Mann: Everything is fixed. It’s over.

Chris Hill: Everything’s fixed. You’re welcome, everybody.

Bill Mann: Yeah.

Chris Hill: Let me start with an email that we got from a longtime listener and a Motley Fool member, Tom Jones in Davis, California. He writes, I hold a small position in Yum China , with a symbol YUMC. Reports indicate this stock might be delisted for not complying with US tax rules. What does this mean for US stockholders? Great question. I’ll just start by adding, it’s not just Yum China. Last week the SEC identified several US-listed ADRs of Chinese companies. The SEC claims are not adhering to the Holding Foreign Companies Accountable Act, which says that if American regulators are not able to review company audits for three years in a row, the SEC can end those stocks from being traded. They can delist them. Tom’s issue is also the issue of many other investors, and there are ripple effects from this that we can get into in a second. But just in terms of this issue, am I correct in assuming that this is an issue that is only going to grow? By that I mean, the SEC has identified, I believe it’s five companies. One of them is Yum China, and it’s five right now.

Bill Mann: It’s all of them.

Chris Hill: It’s all of them. This is the beginning. Bill Mann: It’s five companies right now, but in actuality it’s all of them. There is an American regulatory authority called the PCAOB. The PCAOB is the authority in the US that really judges the accountants. In Chinese law, their accountancies cannot be held to the standards of any other country. No Chinese accountancy is by law supposed to open their processes to the PCAOB. This is what you would describe as an impulse. The problem is, and why I don’t know that this is going to get solved is that the United States, in the interest of protecting American shareholders, which is what this is, is actually doing the same exact thing that the Chinese government wants. The Chinese government wants the Chinese companies to be listed in Hong Kong, in China, not in the US. They would rather their listings be there. I don’t know […]

source How to Think About What’s Going on With Chinese Stocks; How to Make Smart Donations

Leave a Reply