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Monday, August 29, 2011

Shortselling of Chinese Firms

Lots of articles recently about Western firms short selling shares of Chinese firms listed outside of China.

Gaining by betting against flimsy Chinese firms - Washington Post

Another article I read (When it matters - The Economist) mentioned how if a company in China becomes involved in a scandal, it has a huge impact if the government is involved with the firm. And without the rule of law, having good relations with the government is super important in China.



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