By Li Panpan
(JW Insights) Mar 15 -- Tim Ghiriskey, the founder of the Solaris Group LLC and Ghriskey Capital Partners, which have long-time investments in the Chinese market, said in a recent interview with JW Insights: “I love having exposure to China. I don't know how, as a portfolio manager, you don’t have exposure to China because it is such a global force.”
“China is a huge part of the world economy not only today, but it's to be a huge part of it in the future. There's a lot of innovation happening there. And I think that's gonna be a very positive thing. I've had direct investment exposure to China for years, with enough faith in the numbers, good companies and good investments, with no undue risks,” said Tim Ghiriskey.
He also answered questions about the Public Company Accounting Oversight Board (PCAOB) in the United States, inspecting Chinese firms and its influence on the Chinese companies doing IPO in the country.
The JW Insights interview asked: PCAOB claimed last December that it has gotten through executing a full exercise to inspect and investigate firms in China for the first time. Chinese authorities had did not it from completely inspecting and investigating. So does it indicate that Chinese authorities find a compromise solution, or is it a sign that the US is normalizing its economic relationship with China?
Tim Ghirskey replied: “It's great that they (Chinese companies) opened up the financial books to some type of oversight board. That shouldn’t be a purely US board. I think it should be some type of global board or a mix of people to assure investors of what they own.”
“It's a good sign of, like, the continued normalization of not only economies, but all relations relationships between China and the US and the rest of the world as well. We are one world. And it's a precious world.”
For influence on Chinese firms, he said, “I think the PCAOB and its Chinese counterpart will work together to come to one version of financial oversight. It will be easier for Chinese and all other firms and companies to list in the US. Will it change Chinese firms’ compliance systems? I guess, but it also might change some US compliance systems. It’s a learning process and negotiation, it's not a battle, it's not a war, it's two groups of accountants coming together and working together for the common good.”
“I'm assuming, at some point, the board will release any concerns it has. And hopefully, the Chinese companies will respond to those. It's all a process of learning.” “It will evolve over time. I would guess certainly that over the next year, we'd have some resolution of all those issues so that the financials are more transparent and exact. It could be that the board is looking for too much information. It's a learning process for everyone,” he added.