Ever walk through a HK dried Fish market?

It stinks.

Not that it’s all bad, prepared correctly it can be a very flavorful dish. Odds are though that gweilos won’t know how to turn stinky fish into a gourmet Chinese dish.

Given that I just read about the Citic Pacific deal in which the listed HK subsidiary buys out assets from its parent SOE in Beijing. The listed company will aquire about US$36.5 Billion equivalent (RMB denominated) in assets. Its current market cap is about US$6.7 billion HK$ denominated).

It’s being sold as an injection of capital to the listed company. Heh. Anyone else ever known a sub buying out its unlisted parent’s assets for many multiples of its own market cap and it not be a suspicious transaction?

Something is stinky and I suspect that someone who is not a Chinese gourmet chef is being asked to turn this into a gourmet meal. More than likely someone will be left holding a bag of stinky, rotten fish.

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