as some people were concern about Chinese companies delisting...

as some people were concern about Chinese companies delisting from the ASX, here is my take on the situation.

Delisting does not mean the shares are worthless. It just means that it will be a little inconvenience to sell the shares. as oppose to the company going into administration, which means the share are basically worthless.

You can still sell shares via off-market transfer, even if the company is delisted or currently in suspension.

Most of these Chinese stocks got beaten down because they have restriction in relation to paying dividend and/or transferring profits from China to Australia. Not because they are unprofitable, operationally most of these Chinese companies are fine..

Say for example XPD current NTA is 21 cents. This stock has 21 cents backing per share, the market currently value the share at 3.3 cents. However this does not mean XPD doesn’t have 21 cents asset backing per share, it is just that investors fear they cannot access the cash in China. That’s why the share is valued at price much less than its real value… so stupid lemmings sell.

In extreme case where XPD does delist from the ASX. It does not mean that the shares are worthless, remember the company is still operationally fine..the NTA per share is still 21 cents per share. It is just that it will be harder to find a buyer for the share.

Here is what I propose will happen in the next couple of year (iam sure some bastards will read this thread and steal my idea)

Setup a company in Australia with subsidiary in China.

as Chinese companies get delisted from the ASX. (Even though operationally they are still fine). Investors sell shares with NTA of 21 cents at 3.3 cents on market, but once the stock is delisted from the ASX. They will be willing to accept 1 or 2 cents per share offer to trade it off-market.

my company will buy all these shares off-market at 10% of NTA value. We’ll then negotiate directly with the company (owners) and have then buy back the shares at 50% of NTA value or 30% of NTA etc.. this will be a win for the investors who don’t want to be holding onto delisted stock, and for the Chinese companies (or owners), buying back their stock at ½ , 1/3 of NTA price… and profit for me buying at 10% NTA and selling at 50% NTA per shares.

But Chinese companies cannot transfer fund outside of china to buy back stock, you say.. well.. iam selling the shares back to the Chinese company in yuan, and they pay me in China, into a Chinese bank account nominate by my subsidiary in China.

How do you then transfer money out of China? Easy.. there’s lots of Australian companies buying goods from China… my company will just do a deal, whereby we use our yuan fund in china to pay for the goods, and the Australian company pay us here in Australian dollars. Or we could just do a contract and buy the good on their behalf… This way, both companies save on FX fee.. win win situation, and the easiest way to transfer money from China to Australia… and it is all legit.

so iam not dumb after all buying Chinese stocks at great discount, because these stocks are actually not worthless.. Australian investors trash is actually worth a bit of money to the Chinese company (owners)..