8 Comments

can u get rid of the music please?

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sure thanks for the feedback!

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"Mu: Yeah, that's one of the ways I learned to see visibility into the central government's policy-making processes or their thinking around it. We can post it on the show notes some of the names that we saw, publicly, that have been announced, to be an advisor or to be the invitees to the state council's economic studying sessions."

Have you shared the names? I couldn't find the links.

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Thanks for the feedback, it was in the note but we didn't highlight it, will change it to highlight. This is the link, http://politics.people.com.cn/n1/2023/0706/c1024-40029765.html These are some of the names 刘尚希、罗志恒、田轩、黄先海、袁海霞、秦海林、陆铭、赵伟

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“The most important thing is this specific restriction on controlling shareholder sell-down. This is the first time that, in China, for a controlling shareholder to sell down shares, you have to first be able to not only be profitable but also distribute part of your profit to your shareholders by way of dividends.”

there are so many occasions when paying a dividend is not the best way to benefit shareholders. Had Bezos or Musk been forced to do this after AMZN and TSLA went public, the world prob wont be get to marvel at the companies as they are today. BioNTech may never have been able to develop a vac for Covid, or NVDA its GPUs.....

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When the capital market is created by government edict from thin air, as opposed to a spontaneous gathering of market forces as in mature markets, you are bound to have policies and counter-policies and counter-counter-policies that solve some problems and create new ones for counter-counter-counter policies to deal with. I hope this market can finally get more mature one day!

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love it. the counter of the counter of the counter. an endless loop.

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It’s certainly a problematic policy and will create new problems down the road. But again this is a policy out of A-shares’ specific context, and serves to solve the expedient problems of the time. Good policy or not, this is going to have far-reaching and deep impact for market structure

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