The China Hustle (2017)

Trader's Film Library #41 · Frauds and scandals. Analysts who went to China to check whether the factories even existed.

Original title: The China Hustle · Type: documentary · Created by: Jed Rothstein · Usefulness for traders: ★★★★☆

What it's about

A documentary about Chinese companies that listed on US exchanges through so-called reverse mergers, whose businesses often existed only on paper. The story is told by, among others, analysts who travelled to China to inspect the factories and made money shorting these companies.

What it has to do with markets

It's one of the best films about the role of short sellers in uncovering fraud. It shows analysis “in the field”, not just on a screen.

Lessons for traders

• check the facts, not just the financial statements
• short selling can be a form of market oversight, not just speculation
• “this time it'll be different” is the most expensive sentence there is

What to watch out for

An advocacy documentary, but based on concrete cases.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.