CNBC Jim Cramer On Monday, he urged viewers to pay attention to the stocks of Chinese companies, arguing that the regulatory risk was too great to comfortably own the stocks.
“I don’t know how easy this can be. When the communist government explicitly forces a for-profit company to turn into a non-profit organization, it’s probably not a safe place to invest your money. “When”Flirt“The host said.
“It’s embarrassing to deceive me twice,” Kramer said. Kramer, who has been cautious about most stocks in China for many years, spoke positively about Didi before the IPO of the Ride Hailing Giant in late June. Only a few days later, Chinese regulators issued a series of proceedings against the company over its data and privacy claims.
Other tech companies have also faced close scrutiny in recent weeks, leading to a plunge in their stocks. NS KraneShares CSI China Internet ETFKnown as the ticker KWEB, has fallen 22.65% last month. However, it has increased by 3.42% in the last 5 days.
“I think it’s irresponsible to give Chinese stocks a second chance after they’ve pulled Didi and a tutoring company,” Kramer said, even if parts of Wall Street are recovering. Said.
“Throughout history, we’ve seen dictatorships take harsh actions, and then they clean the smoke, make soothing noises, and seduce more suckers they can tear.” He added. “That’s our current situation. You can play this calm time … but I don’t know when they will start cracking down again.”
Kramer says investing in Chinese stocks now is “irresponsible”
Source link Kramer says investing in Chinese stocks now is “irresponsible”