Kyle Bass says investing China is a bad idea now, "profits are not going to westerners"

<p>Kyle Bass is founder and principal of Hayman Capital Management, and he is not keen in sinking investment capital into China at present. </p><p>He spoke with financial media in the US on Wednesday, highlights:</p><ul><li>China is allocating resources to state-owned enterprises</li><li>China is moving away from a market-based approach and moving to a party-based approach</li><li>All the profits are going to management and the party. It’s not going to westerners</li><li>Western companies face a swath of legal uncertainties, referring to China’s expanded counter-espionage law, making it difficult to know what is permissible </li></ul><p>Apart from market and legal considerations, there is also the war worry:</p><ul><li> "Quite literally since 2017, [Xi Jinping has] told you that his life’s mission is the reunification of China and Taiwan," </li><li>Xi is already 70 years old and thus a Chinese invasion of Taiwan will happen "sooner rather than later."</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.