Never buy Chinese stocks listed in London is a golden rule of mine. But I broke it last month tipping Hutchison China MediTech (HCM) at an 870p offer. They are now 960p bid after interims yesterday. So why break a golden rule and is there more to come for the shares?
My pal Mark Slater put me onto this one. He does his due diligence and the point about this company is that its largest shareholder is a sort of Chinese Buffett who realises value by spinning out businesses and keeping a majority stake. One fraud and his reputation is toast. It won’t happen.
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