How To Find A Good Chinese Company

Find the ones that stick to their core business.

Caixin: Steel-Maker Shagang Changes Tack With Internet Acquisitions
Chinese steel-maker Jiangsu Shagang Group has made a significant $3.8 billion deal to buy two internet data firms, including the owner of Global Switch, as the firm seeks to explore new industries amid ongoing overcapacity within the steel sector.

Shenzhen-listed Shagang, which supplies specialized products to infrastructure and vehicle builders, said it planned to acquire Jiangsu Qingfeng Investment Management Co. Ltd. and Beijing Daily Tech Co. Ltd. for a combined 25.8 billion yuan ($3.8 billion).
High debt levels are hardening the political and culture forces that prevent companies from failing. I associate this type of complete business shift with OTC penny stocks in the U.S.

At least in this case it sounds like they have some experience:
Shagang’s move to open up a new revenue channel in data is also a result of the emerging boom in online steel trading platforms. There are about 300 such platforms in China, with one of the largest being Ouyeel, of which Shagang is a shareholder.

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