Chinese concept stocks mainly include two categories: one is enterprises registered in Chinese mainland and listed overseas; The other is an enterprise registered abroad, but its main business and relationship are still in Chinese mainland.
Concept stocks refer to stocks with special connotations, which are usually regarded as the subject of stock selection and speculation, and become a hot spot in the stock market. It has a specific name, thing, theme, etc. For example, financial stocks, real estate stocks, asset restructuring stocks, brokerage stocks, Olympic theme stocks, insurance stocks, futures concepts, etc. are all called concept stocks. Simply put, concept stocks are pre-speculation on the growth of operating performance in the industry where stocks are located.
Matters needing attention in stock investment:
There are some legal uncertainties in the mode of 1.VIE. Under normal circumstances, the government implicitly recognizes it, but there is inevitably a legal risk point of "covering up illegal purposes in a legal form". In addition, the intensity of agreement control is different from that of equity control, and the risk of agreement default of the former is relatively high.
2. Short-selling institutions like to short China stocks, because many of them do have certain fraudulent behaviors. Just as domestic box office fraud is questioned, foreign institutions also like to question the fraud of China Stock Exchange and release relevant reports as blank. When the stock falls, the interests of retail investors are damaged.
3. Due to the existence of the class action system, there are many law firms specializing in attracting investors, who like to file false statement lawsuits against China Stock Exchange Corporation and its executives. Although they often settle the losses of insurance companies in the end, they will have a certain impact on the company's operation.
4. Cross-border cooperation cannot be formed between China and foreign bankruptcy laws. If Chinese mainland's business entities enter bankruptcy proceedings, the interests of foreign shareholders and bondholders may be erased through this procedure, so they cannot recover any assets of Chinese mainland. See the case of Wuxi Suntech for details.
Therefore, it is difficult for me to recognize that China Stock Exchange is mainly invested by China investors. In addition to the above legal risks, overseas investment is originally intended to spread risks, especially to hedge the risks of China's economic downturn. The business entity corresponding to China Stock Exchange is in Chinese mainland, which is also affected by the economic downturn. Therefore, investing in stocks may not be consistent with this purpose.