China Growth Stocks

[GorillaGorilla]

SOE/SIAF - Why do they put them into firms losing money? There's no rational fiscal reason - it's just the state money helping the state businesses. I'm quite sure companies know how to ask for a bank loan - my feeling is that they don't have the connections to get it.

My understanding is that in China is about business connections or Guanxi - especially state connections.

SIAF has managed to get a bankloan and in their recent PR are going to have a visit from the communist hierachy the "Secretary General of Qinghai Province" - I think that's an example of a well connected company. (No idea why that province other than it was the quake province - perhaps he wanted to get away). (Have they had other visitors?)


rich