Stock Market Pundit Dumps Chinese Stocks, Says Xi Simply Too Hostile

CNBC’s “Mad Money” Jim Cramer said Wednesday he can’t recommend that investors buy Chinese stocks because the communist government there is a “total wild card.”

Photo Insert: Mad Money host Jim Cramer

Chinese President Xi Jinping “does not like capitalism,” Cramer told “Squawk Box,” saying the leader of the world’s second-largest economy “may be the first totalitarian dictator in a long time.”

Cramer’s comments came as two well-known US investors sent mixed signals on Chinese stocks. Charlie Munger’s media and investment firm, Daily Journal Corp., nearly doubled its stake in Chinese e-commerce giant Alibaba, according to a regulatory filing Tuesday.

Munger, who turned 98 on New Year’s Day, is also Warren Buffett’s longtime investing partner, Matt Belvedere reported for CNBC.

Meanwhile, DoubleLine founder Jeffrey Gundlach told Yahoo Finance this week that “China is uninvestable, in my opinion, at this point.” The so-called bond king said he’s never invested in China.

“I don’t trust the data. I don’t trust the relationship between the US and China anymore. I think that investments in China could be confiscated. I think there’s a risk of that.”

Cramer agrees with Gundlach, saying that it’s “impossible” to think about investing in stocks of Chinese companies against such an uncertain backdrop in China that — even if there’s a good argument to buy them.

“There is a sense that the middle class is going to do better in China,” Cramer said. “Alibaba is going to do well. JD is going to do well. Baidu could do well. But that doesn’t mean their stocks can translate into doing well.”

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