Accounting Schemes at Chinese Tech Giants (w/ Stephen Clapham and Kyle Bass)

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 5 January 2021

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

Hayman Capital's founder and CIO Kyle Bass welcomes forensic accountant and Behind the Balance Sheet's founder Stephen Clapham to break down the accounting irregularities peppered throughout the regulatory filings of China’s biggest tech companies. Sharing insights from his proprietary research report on Alibaba, Baidu, JD.com, Meituan Dianping, and Tencent, Clapham shines a light on the ways these companies are using loopholes in order to inflate profits, hide liabilities, and mask the capitalization of questionable assets. Bass frames Clapham's findings through the lens of notable balance sheet disasters and downright frauds, and they explore the jurisdictional risk of investing in Chinese companies in general. Lastly, Bass asks Clapham about his latest book, "The Smart Money Method: How to Pick Stocks Like A Hedge Fund Pro". Key Learnings: Hidden risks lurk within corporate balance sheets, even those of the world’s largest tech companies. Stephen Clapham and Kyle Bass show viewers how to spot those risks before they can inflict major damage to your portfolio. Recorded on November 18, 2020 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Show The old is always is 18 and 5 years old
0:15.0	30 years old, lost to men and culture in happen and
0:19.0	be right for a hair house for the wrongs.
0:22.0	Fly bake. No,ch, then we've got the next,
0:25.0	off Lufthans group punk careers. You're going to. Steve, thanks for taking the time to join us today. We're talking about a subject
0:49.6	that's near and dear to my heart and unfortunately it's not dear and dear to many both institutional
0:55.6	individual investors hearts and we'll get at that.
0:58.0	We're here to talk about the numbers.
1:00.0	We're here to talk about something that's both recent and topical as far as Steve's
1:06.2	concerned, but also it transcends his most recent reporting into a much longer conversation which I hope we're going to have today.
1:15.8	So Steve, welcome and let's talk about your most recent experience.
1:21.9	If you don't mind, let's give the real vision audience just a little primer on what got you to look into some of the big Chinese account, firms accounting policies and practices.
1:35.0	And what did you find?
1:37.0	Well, Carl, first of all, thanks for having me on.
1:39.0	It's really exciting to be here and to be talking to you.
1:42.0	The reason that I did this report is very simple. I do, you know, the bulk of my business is training. I do a forensic accounting course for institutional investors, but many of those investors find material in the course that they find interesting or sometimes worrying.
2:00.0	You know, some of the clients, they see I've brought up an example in the course and it's something they own.
2:07.0	So I started to do bespoke research for people and I was asked by one of my good clients to do a forensic accounting report on
2:17.8	Alabama and its big four peers.
2:20.0	So buy do JD.com, 10 cent, Me too.
2:24.2	And the client came up with a long list of things.
2:27.5	So there are like a dozen different points
	...

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