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  • Ernie Diaz

Schools & Regulations

First they came for the tech companies, and we did not speak, for cybersecurity and monopolies are a thing.


Next they came for the listed education companies, and we did not speak, for anyone in China knows these outfits charge way too much, pay teachers way too little, and deliver next to nothing.


Is there a smarter strategy than waiting to see who they come for next? Certainly, to go where the welcome signs are. While the prospects of Chinese companies looking to list in the U.S. appear murky for now, it's never been easier for an institution to sign up as a QFII, and start getting into A-shares.


"We're talking about a $10T market cap, over 4,000 companies, and 4 out of 5 traders being retail," says Edward Lehman. "Yes, the indexes in general are taking a beating, but there is both growth and value aplenty in this burgeoning market, which the MSCI is weighting more heavily than ever. Of course, exposure to the upside means a bit more active approach than buying a Morgan Stanley index fund."

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