Stay away from Chinese stocks

Stay the fuck away from Chinese stocks. Or even any EM stocks where you aren't 100% sure that the company and management isn't fraud. I have been privately warning about Chinese stocks for a while now and stand vindicated over the last few days.

Shares of China’s Luckin Coffee plummet 80% after investigation finds COO fabricated sales
Luckin Coffee disclosed that an internal investigation has found that its chief operating officer fabricated 2019 sales by about 2.2 billion yuan.
TAL Education Plunges in After-Hours on Sales Fraud Disclosure
Chinese education company slump comes just days after Luckin Coffee implosion.

I can highly recommend everyone to watch the movie "The China Hustle". Almost all Chinese ADRs have an extremely opaque corporate structure, with Cayman Island shell companies holding contracts to Chinese companies and investors holding equity in these companies.

Even the larger Chinese companies aren't immune. You don't have to look beyond how minority shareholders got short-changed in the Alibaba Ant Financial saga. I have reason to believe they could be overstating their sales figures too.