China Growth Stocks

[RedStick]

Oh, the SEC is no doubt foaming at the mouth after the events that have unfolded this week in China. You better believe this backdoor process of entering U.S. markets has them in an absolute fury. The best thing for RTO/SPAC companies to do at this point is go private and do an ADR or IPO. New ticker. Clean filing history. Audited financials before they even list. The whole nine yards.

It actually appears that ADRs perform better. In a sense, they are more credible because the fact that they're entering into an ADR usually means they're already somewhat established in China.

RTOs should be avoided at all costs now, IMO. Sure, there are still perfectly legitimate companies in this space, but there's going to be a whole lot of baby being thrown out with this bath water.