Can someone explain like I'm five what this means?
Chinese Economics Thread
- Thread starter Norfolk
- Start date
Going public is a way to raise capital, since a growing company doesn't have enough even from venture capital. So they usually list in say NYC, the primary listing, selling company stocks so they have more cash to expand. NYC or London is the primary listing since it's the best place to raise capital. But since it's not 100% safe anymore to list in America, some Chinese companies are also raising capital in HK or Shanghai. This is their secondary listings. On a secondary stock market like HK, which is not as big but less politically dangerous than NYC.
Simple 5 year old can understand.
Here goes.
Bank A is too risky to borrow money from. And not worth selling part of my company to.
So I'm going to borrow money from bank B, and sell part of my company to.
@Gatekeeper you just destroyed my explanation. Your explanation is the one for 5 year old, mine is too convoluted HAHA. You are my sir for a reason
Mines got a lot less words and more pictures (if I knew how to paste them on here). We all know how a 5 year old likes more pictures and less wordy. Sorry bro.
What's up with changing of the avata to a car thing anywhere. I though you and your girl looks good.
HAHAHA that's my idol Takuya Kimura. I mean I'm seriously and devastatingly handsome, but still not as handsome as him.
U.S. is trying to coerce U.S. investors/funds into sell all their Chinese company shares and put the roughly USD$1 trillion into U.S. companies.
This is as market distorting (i.e. stupid) as the tax cut when Trump first became President. The real unemployment rate back then was approaching zero.
This will make the COVID-check induced market bubble even bigger since mutual funds can't do shorts. When the bubble bursts, several trillion dollars will simply disappear without contributing any real value to the economy and this debt can only be inflated away over time.
If you live in the U.S., time to think about getting into inflation-hedged 'real' assets or move to Canada.
Please at least restore the left half of your original profile picture. Thank you.
Got it, makes perfect sense.
Explanation unclear, tried to borrow money from Bank B but that company doesn't exist.
(Thanks tho also helpful)
