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Jul 16, 2018Liked by Bill Bishop

My thought on the reserve requirement for Tencent, etc., is that perhaps there are some significant headwinds expected, and China does not want to have to deal with damage to the reputation of some of their national champions. Even money market funds can fall below par (see 2008), so parking customer funds even in low-risk investments could lead to lock-ups, virtual bank runs, etc. So we have a potential drag on growth in exchange for stability, and wonder how many more of these types of decisions are being made...

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