Tiger Woman on Wall Stree (32 page)

Active investing is work—hard work. It is not a game; nor is it gambling. It is not for everyone. Only those who are willing and able to commit to the intellectual and emotional discipline it demands will excel. Everyone else is welcome to watch the market from a safe distance. There is no shortcut—no effortless road to riches—for the active investor.

18
urban youth
http://press.georgetown.edu/book/georgetown/chinas-sent-down-generation

19
August 1968
http://dangshi.people.com.cn/GB/85039/14329784.html

26
early 1980s
http://www.chinatoday.com/data/china.population.htm

29
foreign investments
Ezra F. Vogel,
Deng Xiaoping and the Transformation of China
(Cambridge, MA: Belknap Press, 2011)

38
state-designated prices
http://www.china.org.cn/features/60years/2009-09/16/content_18534471.htm

39
27 percent in the middle of the decade
http://www.suomenpankki.fi/bofit/tutkimus/tutkimusjulkaisut/online/Documents/bon0108.pdf

47
in 1942
http://www.insidevoa.com/content/a-13-34-beginning-of-an-american-voice-111602684/177526.html

97
Alibaba’s board
http://dealbook.nytimes.com/2012/01/23/a-loophole-poses-risks-to-investors-in-chinese-companies/

103
the codes
http://www.bloomberg.com/news/2012-03-15/china-corporate-espionage-boom-knocks-wind-out-of-u-s-companies.html

103
have filed for bankruptcy
http://money.cnn.com/2013/03/21/news/suntech-solar-bankruptcy/index.html

110
first quarter of 2009
http://online.wsj.com/article/SB123984767545423661.html

117
in 2008
http://www.renaissancecapital.com/ipohome/review/2010review.pdf

117
same period
http://www.dailyfinance.com/2010/12/05/a-new-record-six-chinese-ipos-to-hit-u-s-markets-in-a-week/

127
traditional IPOs
Public Company Accounting Oversight Board, Activity Summary and Audit Implications for Reverse Mergers Involving Companies from the China Region: January 1, 2007 through March 31, 2010, Research Note # 2011-P1 (March 14, 2011). Accessed through
http://www.sec.gov/news/speech/2011/spch040411laa.htm#P77_41374

128
no longer filing with the SEC
PCAOB,
http://pcaobus.org/News/Speech/Pages/09212012_FergusonCalState.aspx

147
Qing rulers
Stephen R. Platt,
Autumn in the Heavenly Kingdom: China, the West, and the Epic Story of the Taiping Civil War
(New York: Knopf, 2012)

148
market in China
http://www.nextgen-china.com/admin/Southidceditor/1.pdf

149
in prison
http://www.chinahush.com/2010/10/21/sue-me-if-you-dare-my-dad-is-li-gang/

149
tainted milk powder
http://www.telegraph.co.uk/new s/worldnews/asia/china/3074986/Chinese-ordered-cover-up-of-tainted-milk-scandal.html

150
inspection-free privileges
http://www.bloomberg.com/apps/news?sid=aenM_612o.4c&pid=newsarchive

150
Chinese dairy products
http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20080066441&ch=9/23/2008%208:19:00%20PM

150
short-term profits
http://www.voanews.com/content/a-13-2008-09-26-voa45/403825.html

151
court cases in China
http://www.reuters.com/article/2009/01/02/us-china-melamine-idUSTRE50112220090102

152
signaling equipment
http://www.nytimes.com/2011/12/29/world/asia/design-flaws-cited-in-china-train-crash.html?_r=0

153
railway’s rapid construction
New Yorker, 2012,
http://www.newyorker.com/reporting/2012/10/22/121022fa_fact_osnos

153
little girl alive
http://www.forbes.com/2011/07/27/china-train-crash-opinions-contributors-rescue-xiang-weiyi.html

154
on education
http://carnegieendowment.org/files/pb55_pei_china_corruption_final.pdf

156
at SOEs
http://www.chinadaily.com.cn/bizchina/2012-08/22/content_15694719.htm

156
30 to 50 percent annually
http://europe.chinadaily.com.cn/business/2013-05/31/content_16550756.htm

156
world’s luxury products
Bain & Company’s China Market Study, 2012,
http://www.scmp.com/news/china/article/1109728/chinese-consume-one-quarter-worlds-luxury-goods-says-report

157
47 mistresses
http://www.guardian.co.uk/world/2013/jan/05/chinese-corruption-crackdown

157
in Chongqing
http://news.xinhuanet.com/english/china/2013-05/07/c_132365731.htm

159
20 years’ time
http://www.richemont.com/images/investor_relations/results/annual_results/2012/annual_results_transcript_fy2012_ui36ze82bna.pdf

159
to call off its expansion
http://www.marketwatch.com/story/china-luxury-apparel-and-accessories-market-report-2012-2015-2013-07-18

160
between 2001 and 2010
Illicit Financial Flows from Developing Countries: 2001–2010,
http://iff.gfintegrity.org/iff2012/2012report.html

167
$400 million market cap
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20110322000107&cid=1102

167
$1 billion
http://www.nytimes.com/2011/05/27/business/27norris.html?pagewanted=all&_r=0

167
were inaccurate
http://www.sec.gov/Archives/edgar/data/1412494/000095012311052882/d82501exv99w2.htm

168
preclude the possibility of fraud
http://newsandinsight.thomsonreuters.com/Legal/News/2013/04_-_April/Deloitte_s_China_unit_wins_dismissal_of_fraud_claim_over_audit/
http://www.reuters.com/article/2013/05/28/us-usa-auditing-china-deloitte-idUSBRE94R0RG20130528

172
insider trading
http://www.ft.com/cms/s/0/0b916fda-202f-11e1-8462-00144feabdc0.htmla

172
By mid-2013
http://www.sec.gov/litigation/litreleases/2012/lr22508.htm

173
$887 million
http://online.wsj.com/article/SB10001424052970204358004577029553247909414.html

173
against its earnings
http://www.bloomberg.com/news/2013-01-18/caterpillar-to-take-580-million-writedown.html

173
Caterpillar was alerted
http://www.caterpillar.com/cda/layout?m=393518&x=7&id=4326216 &mode=noNav

175
Today, the process
http://books.google.com/books?id=n-IwJdFn3JYC&pg=PA157&lpg=PA157&dq=Supreme+People’s+Court+of+China+securities+litigation+2001&source=bl&ots=7sVYFNfXjA&sig=rS8SQ6v-mYKEuSRPezwDFk1mUHg&hl=en&sa=X&ei=f8a0UcbDB83LqQHTr4CIDQ&ved=0CC0Q6AEwAA#v=onepage&q=Supreme
percent20People’s percent20Court percent20of percent20China percent20securities percent20litigation percent202001&f=false

175
in favor of investors
Roman Tomasic and Neil Andrews, “Minority Shareholder Protection in China’s Top 100 Listed Companies,” p. 5

185
year on year
http://www.iresearchchina.com/views/4611.html

185
price war for many years
http://www.morningwhistle.com/html/2013/commerce_0201/217015.html

186
HK$8 per share
http://www.byd.com/na/aboutus/milestones.html

187
car demand
http://online.barrons.com/article/SB50001424052748704836204578362533369655220.html

193
mid-2013
Nasdaq

193
500 million registered users
http://news.xinhuanet.com/tech/2013-02/21/c_124369171.htm

197
pyramid scheme
http://money.msn.com/top-stocks/post.aspx?_blg=42&post =fa0a9db0-f8cd-4ad8-a69d-932c47dbb7a0

197
“strong sell” rating
http://www.muddywatersresearch.com/research/edu/initiating-coverage-edu/

199
Chinese Academy of Social Sciences
http://www.theepochtimes.com/n2/china-news/china-sends-more-students-abroad-than-any-other-country-295022.html

204
110 countries
http://www.yum.com/company/

209
as the reason
http://www.yum.com/investors/news/ir_112912.asp

210
outbreak of a deadly disease
http://www.reuters.com/article/2013/04/24/us-china-farming-pigs-idUSBRE93N1C720130424

216
poultry supply
http://www.reuters.com/article/2013/01/07/us-yum-outlook-idUSBRE9060UX20130107

217
dozens had died
http://www.who.int/influenza/human_animal_interface/influenza_h7n9/WHO_H7N9_review_31May13.pdf

217
13 percent
http://investors.yum.com/phoenix.zhtml?c=117941&p=irol-newsArticle&ID=1809994&highlight=

218
British consumers
http://news.cntv.cn/2013/03/27/VIDE1364383682319950.shtml

218
of 1999
http://english.people.com.cn/english/200006/01/eng20000601_42067.html

225
same number as America
http://www.economist.com/news/economic-and-financial-indicators/21581768-worlds-biggest-banks

226
at benefiting
Henry Sanderson and Michael Forsythe,
China’s Superbank: Debt, Oil and Influence—How China Development Bank Is Rewriting the Rules of Finance
(Singapore: Wiley/Bloomberg, 2013)

227
Japan at 60 percent
http://www.international-economy.com/TIE_W10_ChinaEngineGrowth.pdf

229
of employment
http://finance.ifeng.com/news/special/zgfzlt_2012/20120317/5764772.shtml

231
200 percent of GDP
http://online.wsj.com/article/SB10001424127887324338604578325962705788582.html

231
gray market loans
http://www.reuters.com/article/2011/08/10/china-loans-idUSL3E7JA03T20110810

233
on the year
Fitch Ratings: Chinese Banks—Issuance of Wealth Management Products Heats Up as Year-End Approaches, December 5, 2012

234
Ponzi scheme
http://www.chinadaily.com.cn/opinion/2012-10/12/content_15812305.htm

242
their exams
http://www.theepochtimes.com/news/5-9-8/32106.html
00

243
five years before
http://www.nytimes.com/2012/02/05/education/international-students-pay-top-dollar-at-us-colleges.html?ref=global-home&_r=0

243
high school transcripts
http://www.nytimes.com/2012/02/05/education/international-students-pay-top-dollar-at-us-colleges.html?ref=global-home&_r=0

This book is truly a product of teamwork. I want to thank Ana Swanson and Hannah Lincoln, my “China hands,” for their tireless editing on the book. These two extraordinarily talented American women’s unique experiences, insights, and endless fascination with China were truly inspirational. Thanks to my agent, Esmond Harmsworth at Zachary Shuster Harmsworth Literary and Entertainment Agency, for his vision, dedication, and confidence in me. I also thank Tom Miller at McGraw-Hill for his skillful editing, crafting, and guidance. I also want to thank Samantha Marshall and Gwynn Guilford for their contributions to the book.

Please note that index links point to page beginnings from the print edition. Locations are approximate in e-readers, and you may need to page down one or more times after clicking a link to get to the indexed material
.

Ackman, Bill,
197

“Active Chip,”
99
-101

Adolescence,
1
,
35
-52

business practices at mother’s factory,
42
-43

death of “Little Uncle,”
43
-45

education at SISU,
48
-51

exposure to American popular culture,
35
-37

father’s interest in American news and culture,
46
-48

interest in financial markets,
45
-46

living standard during,
46

reform movement,
37
-39

Tiananmen Square demonstration,
39
-41

ticket scalping,
41
-42

TOEFL examination,
48
-52

ADRs (
see
American Depository Receipts)

Alibaba,
97

Alpha,
3
,
117
-120,
233
-234

American culture:

Chinese education about,
53
-54

first exposure to,
35
-37

sports in,
241
-242

American Depository Receipts (ADRs),
174
,
177
,
194
-195

American Superconductor Corporation (AMSC),
102
-103

Andersen, Hans Christian,
28
,
67

Andor Capital Management,
14

“Andrew” (husband),
89
-92,
110
-112,
142

Antidumping actions,
103