points by epolanski 4 days ago | 0 comments
I'm not aware of Chinese law, but I suspect that lying to the public or investors carries risks.
[–] Gareth321 4 days ago
[–] pixelstack 4 days ago
> As a now former Chinese investor, the numbers reported in China are almost entirely fictional.
where they not? Pick any corporate in the world and you will find bunch of made up numbers just to make stock value go up
[–] Gareth321 3 days ago
Most publicly listed companies in the West require independent audits. Those audits are published for everyone to read. The listed company and the auditors are all tightly regulated, and while fraud can happen, it's relatively rare.
I think you're making the mistake of thinking that because fraud occasionally happens in the West, it's on anywhere close to the same scale as China. If Chinese companies were capable of passing independent audits, they'd all be publishing independent audits. That would be a massive confidence booster in China and internationally, and stock prices would rise significantly. They don't, because they wouldn't pass.
[–] Danox 3 days ago
Fictional to who? After the Evergrande Group or Jack Ma I would imagine not to the Chinese government anymore outside China maybe a little.
[–] ares623 4 days ago
The people running AI companies are famous for being risk averse
[–] crossroadsguy 4 days ago
While I disagree with PC's insinuation, but in China there's just one thing that carries legal/fatal/etc risk for a large company and lying to public or investors isn't that.
[–] Danox 3 days ago
After China Evergrande Group misleading the Chinese government would be life altering.
It’s a rabbit hole but if you have some time it’s fascinating to look into the sentiment of investing in China vs the rest of the world. Because the numbers are so unreliable, investing is considered about the same as gambling in China. You’re more likely to lose a lot of money than win, and there is no way to accurately predict strong from weak companies based on their reported financials. Occasionally senior leaders will sentence the leader of very large failed company to death to attempt to maintain confidence, but it’s not working. This is one of the reasons for the housing bubble. There just aren’t stable investing opportunities in China.