It’s a risk to build into the financial model, just as folks might invest in volatile countries in South America and Africa (“emerging economies”).

If you offer me a chance to turn $1M into 10x or 100x, but on some occasions, it goes to zero (either because of business or government failure), that might be a level of risk I’m willing to take based on desired yield, asset class exposure requirements, and risk tolerance/management.

The foreign sector does not invest in China. Chinese invest in China as they have no other place to invest. Now it should become clear why the whole world wants to park their money in the U.S. Things like rule of law and respect for property rights are more precious than gold, and just as rare.

Naspers a dying newspaper and book publisher invested 32 million USD in Tencent - it is now worth over kabillions.

Because you hope that someone else is left holding the bag when this all comes crashing down.

This is the interesting take, while most of the other comments on this thread express schadenfreude because he’s a billionaire.

This is the CCP showing it’s true colours, usually hidden beneath an urbane capitalism-friendly facade.