• Ernie Diaz

Bringing Their A-Game

Politics makes shortchanged bedfellows. As we've written before and will no doubt write again, the paradigm that China stocks = the VIEs of giant tech companies that make it to New York is keeping average institutional investors out of a compelling opportunity.

It's the world's second largest stock market, at $12T market cap and 4000+ . And despite, or rather in tandem with all the regulatory crackdowns, China's government has mandated it as the engine for capital formation of all the quality growth and innovative companies it needs to play its side of the current great geopolitical game.

So while NBC money trots out the risk-off China fund manager of the evening, keep in mind less PR-hungry investors, like- oh we don't know-Warren Buffet. He's been long A-share automaker BYD for 13 years now, and is up a Buffetish 3400%. His consiglieri Munger likens BYD's founder to Thomas Edison and Jack Welch's love child.

"Obviously, Buffett has not only acumen, but also resources far beyond that of the average institutional investor," says Edward Lehman. "However, the government has streamlined Qualified Foreign Institutional Investor regulations to a degree in line with their quoted commitment to drawing international money. There are scores of potential BYDs among the 4000+ A-share stocks, and many more to come, as China focuses on quality growth and higher value sectors."

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