We should just point out real quickly Here tom pretty much every big volume Mover right now in the u.s pre-market Is a chinese stock or some stock linked To the chinese markets over stay with us Through this and we can see that You know the u.s ownership of this adr This is the domiciled rights they're out Of cayman islands this is typical Chinese business they come over here Where we can trade them in america Invesco seven percent alibaba seven Percent morgan stanley five percent Wells fargo three percent And on and on we got the right guest at This moment christopher grassanti Of mai capital is a great student of the Equity markets Looking for value within growthiness now Chris do you own Any of these chinese companies we don't Tom We think there's a lot of opportunity Here that's that's just much Simpler and if i if i were weibo Shareholder i would be afraid I hate to use this analogy but i think Hong kong was frankly taken Private several months ago and it's it's An issue of control i think it's not Data it's about controlling the most Important Uh political and corporate entities in The country
I think you and i are on the same page On this your job is to talk about it my Job is to ask the questions i will We spoke to richard haas of the council On foreign relations in the last hour About an american disarray is this a Beijing chris chrysante In capitalistic or financial disarray No in fact tom i think it's a beijing That's exercising It's uh strength and it's perhaps taking Advantage of an america in disarray but It's also exercising its strength in its Own playground So um i would i would suspect we'll see More of that over the in the second half Let's talk yeah chris i am curious here About what the effect this could Potentially have on American companies there's been a lot of Reports about Some of the issues tesla is having with Regards to its relationship With chinese authorities obviously uh Apple and the iphone basically wouldn't Exist Without its relationship with china here Is there a point where Uh u.s investors european investors need To start being worried About the ties that those kind that Those uh Countries and those companies in those Countries have with china
Yes i'm only half joking when i say yes There's a point and it was last year I i really think uh what this exhibits Is a flexing of muscle Much more overtly than we've seen in the Past but but clearly i don't Even think the chinese have been trying To hide the ball they want control over Just about every financial transaction And corporate move in the country so I think it's a it's a tough place to do Business as as the major tech companies I've been finding out It is a tough place to do business it's Also a relatively lucrative place to do Business Uh based on the size of the population And of course the growing wealth there For a company like apple or any sort of Big tech company that wants to have a Presence there How comfortable are you chris as an Investor in some of those us Names uh and being exposed to that Chinese market Well not terribly comfortable i i'd say What we do try to do Is pick those that can survive a Facebook is a perfect example Without it even though as you mentioned It's such a terrific market That you know the rest of the world Still dwarfs china by itself so A facebook a google have been doing
Pretty well without toeing the line and Basically having been mostly excluded From the marketplace so we like that Yeah a number of those companies Actually um threatening to pull out of Business in hong kong If they have to toe the line there Is that a concern for you when you look At the um International companies that you're Invested in how they do their business In china how they Manage that balancing act of course it Has to be concerned And i'm a great admirer of richard Haase's and and i think the black swan That we may Be seeing over the next few years is a Real kind of Hot confrontation with china and that Very much worries me So again i would uh it's a it's on the Negative side of a balance Those companies that have china as a Large piece of the pie for revenues and Profits But more and more that's got to be all Of the big companies you're invested in If i think of the big Banks if i think of the big cyclicals The car makers You know the equipment makers um if i Think of the big tech Companies they all have to do business
In china it's Their biggest fastest growing market Well you know i i wouldn't go quite that Far actually i think facebook is frankly Excluded from china Google is mostly excluded from china and They're doing You know pretty darn well so i i'm not Saying they can Obviously they'd be able to grow a lot Faster but but they're doing okay As it is now but having said that we Can't keep on going like this with you Know A divided world of people who can and People who can't so So there's a resolution coming i'm just Not sure it's a happy resolution Chris we're not having the normal Christopher grisanti interview which is A good and beautiful thing thrilled to Have you on with this Breaking news out of china but to bring It back to something you've been expert On and profited on And that is apple computer i believe a Apple has manufacturing facilities in China I believe b apple has a lot of revenue Coming from China is apple shares or your confidence In apple shares Affected by what china does with chinese Stocks
Now how can they not be tomba but i Would say even greater We're not super positive on apple as Opposed to other alternatives in Technology space Simply because at the end of the day Most of its profits still come from Iphones so look i i love apple i love Tim cook It's just an expensive stock at over 30 Times earnings When i can get a faster growing Non-hardware stock like facebook Selling in the low 20s times earnings Based on nexus earnings And and so i just think there's other Better ways to play tech growth than Apple At this current time
