2698.HK & Friends

Looking at the top listed fabric manufacturers in China that I can find, all are listed in A shares except for one, 2698.HK. While I don’t think it is fair to compare A shares with H shares because A shares are apparently not very mature. But look at this, what on earth is wrong with 2698.HK’s PB. It is at 0.17 whereas all the others are at 1 or above. 2698 has around $1.72 cash per share according to its last annual report. So the worst case, it will probably go down to $1.72? 

Update: Apparently Chinese companies listed on the A share have the obligation to buyback their shares if they are below their NAV…that is a bit communistic…

Update 2: There are also doubts about the legitimacy of Lu Thai Textile’s accounting on the Internet. I have not studied that company and intend not to.

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