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Recommendations: 0
I am just starting to look at China seriously. I own SEED (Origin Agritech) and have started a Board for that stock. I also own FEED (AgFeed).
It is tough to know what is happening with a Chinese company. As some of the posts here note, a company can go from growing to trouble very quickly. But, China is the growth story in the world and owning Baidu and others have returned handsome profits.
Chinese markets can be quite different. I own SEED because it gets tax exemptions from the government. China's leaders want to build a biotechnology base in ag products. What better way to grow than to be able to reinvest your entire profits?
I also see that the Chinese government limiting what Monsanto and other world seed leaders can do. This protection should help SEED build mind-share in China as it creates its product base. When competition is let in, SEED should have reached a strong base in China and be ready to take on world leaders. That is a development advantage a new company competing in the US would never get.
W.D.
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