China Overseas Tech Stocks a Bad Bet for Investors

One of the most misunderstood realities of the past decade, and still to this day, is the fundamental weakness of the renminbi. Until there is a wholesale change in the economic environment, which includes China reforming away from GDP-push policies such as making as much steel as possible, the yuan will remain in danger of a breakdown. Perhaps China can lockdown the market and avoid ever paying a price in the FX market, but a price for policies artifically propping the yuan will be paid in full, plus unintended damages.

ZH: The Deepest Motivation Behind China's 'Reform' Agenda Revealed As Very Simple

Thus, in the waning days of the Chinese growth story, the deepest motivation behind China’s reform agenda is revealed as very simple: capturing dollars and then leveraging up foreign reserves by printing up a massive money supply in RMB. And directing a portion of the dollars, of course, into leadership pockets.