Looking at the new year and the international backdrop it was interesting to examine Chinese listed stocks in US so heavily discounted .

There are varying perspectives on how this continue to pan out in 2022 and beyond with the geo political issues at the forefront at present time.

One thing is clear is the continued uncertainty between the two economic power houses of the US and China.

Across the past 10 days i have pondered and explored the specific companies in the firing line and would like to present an argument that we may be on the cusp of a once in a generation opportunity to purchase shares in businesses that operate in China that provide more upside that downside or a asymmetrical bet (at this point to time).

I also like the phrase from Buffett "be greedy when others are fearful" which is a very useful characteristic of the current state of play.

I have attached a Charlie Munger article which further adds context as to the value of what China is doing. Specifically talking about the excesses of capitalism and drive to for greed which can do more harm than good long term. The investment by Munger over the past 3-months into Alibaba stock of $40million adds more interest to the conversation.

https://edition.cnn.com/2021/11/03/business/munger-china-economy/index.html

Please see a company called Fanhua Inc listed on the Nasdaq.

Across all metrics this is a well run business.

Founder led (1998) and high insider ownership

Has no debt . EPS of $.82 for the 2021

Gross Margins 34% and net profit margins 9%

Paying 70%-80% of earnings as dividends equating to a yield of just on 8%.

Earnings outlook is also positive with growth expected over the coming 2yrs of 30% .

53.7 mill shares on issue

Stock Price is $7.69

Market cap just over 400mill

At some point these companies present value .

Now might be that time....

Disc Do not own presently

Bill T