The possibility of U.S. regulators delisting Chinese stocks continues to rise, and this fact has kept some investors away from these companies entirely. In this segment of Backstage Pass, recorded on Nov. 5, Fool contributor Toby Bordelon responds to a member's question about investing in Chinese stocks right now.
Toby Bordelon: Let me also before we move on address Colin's question, you've been waiting patiently. "Any thoughts of China investability?" I would not call myself an expert on China by any means. I think it's certainly investable.
I do have some investments in Chinese companies myself and don't really have any intention of getting rid of them anytime soon. I think you've got to be careful. There's always been political risks there.
I think that's more so now since we seem to have some escalating, you want to call them trade wars or technology wars, or just China versus some of the Western countries, that feeds into that. Now, we've also got those fights over, oh, are we're going to make Chinese companies not allowed to list in the United States?
Are they going to go back to the Chinese exchange, maybe Hong Kong make it harder for U.S. investors to invest in them? There is that going on now more so than there was before.
That is a risk that you definitely want to consider. I would say if you've got some favorite companies, especially the big names, I think it's probably OK.
Just whatever you were thinking the risk level was a couple of years ago, take it up a couple of notches and then allocate accordingly. I think that's the best I have.
I don't know if you guys have any thoughts on that if you're China investors or not. Thanks for the question.
