Forget Chinese Stocks, Buy These 2 Japanese Growth Stocks Instead
Chinese stocks occupied about a fifth of my portfolio at the beginning of 2021, but they only account for about 5% of my total holdings today. I reduced my exposure to China for three reasons.
First, Chinese regulators are tightening their grip on the country's leading tech companies. Second, U.S. regulators still plan to delist shares of Chinese companies that don't comply with tighter auditing rules -- and those fears have already caused many Chinese companies to file new IPOs in Hong Kong.
Lastly, many Chinese companies use opaque ownership structures that can hurt U.S. investors. For example, many Chinese companies have raised cash with U.S. IPOs, abruptly gone private again, and then relisted their shares on Chinese exchanges at much higher valuations, while leaving their U.S. investors behind.
Source Fool.com
