Replies to post #87783 on China Growth Stocks

[nsomniyak]

There are a lot of small companies, including many US companies, where officers have lent money to the company at early stages.

However, I have an additional level of concern when this happens with a small Chinese company, as I think many of them still operate as though they were private family companies and not public entities. There is not a clear and consistently applied distinction between "company" cash and personal cash.

Other things equal I would prefer not to see loans from insiders, especially in Chinese companies.

[BigOnChina]

I'd rather go on fact than a "memory" of something that you think happened three years ago. If you find it in writing, I'll believe it.