Just wanted to get some views from some experienced investors as to whether they ever consider subscribing for shares in Chinese companies attempting to list on the ASX. I have only done it once (XPD Soccer @20c) and I think it was only due to pure luck that I doubled my money in about a week as BBY was put into receivership and from memory clients who used BBY to obtain shares were not given any and as such they bought them once listed and drove up the price to 41c. The shares are now sitting at 17.5c. I mainly bought into XTD for the following reasons:
1. demonstrated growth
2. potential future growth given more discretionary income in China and soccer taking off
3. already delivering a profit and liked the metrics
However it is point 1 and 3 that I am really having issues with in terms of that particular IPO and future ones. Given what has recently happened with their market and a few other documented articles of other businesses, I just do not know whether I can trust the information that is contained within the IPO and how easily the companies can be audited.
