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The wrong way to invest in China

by Tony Sagami on June 2, 2008

This is a great, must-read article about the wrong way to invest in China.

The crux of the article (that I absolutely agree with) is to avoid the inefficient state-owned enterprises and concentrate on the rapidly growing private companies run by Chinese entrepreneurs.

“FXI tracks a FTSE/Xinhua index mainly comprised of state-owned enterprises (SOEs). In fact, of the top 10 holdings of the ETF … 10 are SOEs”

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