They make sensational headlines, in China and outside.

Today, news came out that WeShare, parent (or ex-parent according to some) of Dana Rupiah in Indonesia, was raided by the police.

Yesterday, WeCash, parent of TunaiKita in Indonesia, was raided.

Some friends are asking – does that mean these companies are doomed? What shall we make of such news?

Well, one thing to note is to figure out which part of the police actually conducted the raid. If it is a local police station (like the case of WeCash), probably nothing serious – they were just investigating some complaints; if it is by the police department of a prefecture level jurisdiction (like a district of Beijing or a municipality in provinces), then it is probably something serious.

Reading between the lines is an important skill to understand China.

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].