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The challenge in investing in Chinese stocks.

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  • The challenge in investing in Chinese stocks.

    http://chinapaper-holdings.com/newsr...00141EF5.1.pdf

    CHINA PAPER HOLDINGS LIMITED
    (Incorporated in Bermuda on 5 March 2004)
    (Company Registration No.34994)


    FIRE OUTBREAK AT OFFICE PREMISES

    The Board of Directors of the Company (“Board”) wishes to announce that in the late afternoon of 13
    December 2012, a fire broke out at its office in South Part, Jianshe Road, Cangshan County, Linyi
    City, Shandong Province, PRC.

    The Board wishes to inform that there were no casualties caused by the fire and the fire took
    approximately one hour to be put out. The Company has reported the incident to the local authorities,
    who have conducted the necessary investigations. According to the investigations carried out by the
    local authorities, the fire was caused by an electrical short circuit in the office premises. As the
    Company’s financial records were kept in the affected office premise where the fire occurred, the
    financial records for FY2011 were destroyed by the fire, whereas the financial records for the first
    eight months of 2012 were partially damaged and the financial records for September to November
    2012 were severely damaged.

    The Company has started to communicate with its customers and suppliers in order to obtain copies
    of the invoices and other transactional records that were damaged, so as to reconstruct the financial
    records. The Company estimates that it will take approximately four to six months to reconstruct the
    financial records. As such, the Company has informed its auditors of the situation and will discuss a
    possible delay to the annual audit for FY2012.

    Except for some physical damage to the affected office premise there is no other damage to
    production facilities of the Company.

    Further disclosures with regard to the incident will be made once the relevant information is available.

    By Order of the Board

    Chen Yong
    Executive Chairman
    17 December 2012

  • #2
    Re: The challenge in investing in Chinese stocks.

    Isn't "investing in Chinese stocks" an oxymoron?

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    • #3
      Re: The challenge in investing in Chinese stocks.

      Originally posted by GRG55 View Post
      Isn't "investing in Chinese stocks" an oxymoron?

      I knew a Chinese manufacturer who told me that you can't make money doing manufacturing in China because the prices fall so quickly, you'll start to lose money before you can pay off the factory equipment.

      People made money using the credit lines given to their factories to punt commodities and real estate.

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      • #4
        Re: The challenge in investing in Chinese stocks.

        Originally posted by touchring View Post
        I knew a Chinese manufacturer who told me that you can't make money doing manufacturing in China because the prices fall so quickly, you'll start to lose money before you can pay off the factory equipment.

        People made money using the credit lines given to their factories to punt commodities and real estate.
        Yup. Lend into the speculative credit markets. Same thing that companies in the USA did in the late 1920s in the run up to the Great Depression. Same thing the car companies (GM et al), GE and the other industrial company "banks in drag" did last decade in the run up to the Financial Crisis.

        It'll probably end more or less the same way in China too. However the government will be able to skip the part about nationalizing the banks as part of the bail-out...because all the banks are owned by the government already...

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