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Isaac Chan
06 Mar 2019
Business at NUS
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Hello there!
From what I see, US could be a safer place to invest in at this juncture. China is facing some issues with the domestic economy that could possibly make investing in China's stock market more risky (especially if you are investing in individual stocks)
1) China has a mounting debt crisis, and in recent times, there is an increasing trend of defaults in loan payments amongst corporates in China. This could be a red flag for investors given how these big corporates are not able to generate enough revenue to meet their debt obligations - increased risk and uncertainty of returns in the long term??
2) In addition to the first point, to deal with the issue of the mounting debt, the chinese government has introduced a deleveraging campaign, removing debt from the balance sheet of companies and tightening credit. Hence, companies may find it more difficult to secure loans/finances to fund their growth and expansion. This again, may dim the prospect and hurt earnings in the medium-to-long term.
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I would prefer US because of ease of investments and cash movement. Plus many too companies like Al...
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