Alibaba and Chinese stocks

adindas

Never ending SAGA. This is what cause BABA stock to plunge yesterday. It nothing to do with the fundamental of the company. You will never know how politics, influence the stock. They got battered from both sides, Chinese and US government,
https://www.wsj.com/articles/chinese-stocks-plunge-after-sec-stokes-delisting-concerns-11646984220

BABA has fallen 50%+ from ATH. When a stock fall 50% it will need a return/gain of 100% just to  break-even.

Mission193

Relax on Chinese stocks

It’s just drama. No one likes to see there sticks drop massively. BABA is so undervalued.

Remember 90% of the market is run by BOTs that have no emotion. We have emotion which makes us sell as we panic.

BABA is a great company. Fundamentals are great.

if you can buy at these levels to average down.

Thrugelmir

Mission193 said:

Relax on Chinese stocks

Delisting of ADR's from US exchanges is a very serious threat. As will see Chinese stocks either reduced in exposure or removed totally from major indexes. The regulation of stocks listed purely on the HK exchange leaves a lot to be desired. 

Mission193

Thurgelmir

thanks for the reply. Serious threat based on what?

Not letting the USA show audit there accounts. 

If they get delisted you can either move your shares to the HK exchange or a OTC

please research other delisted companies and see how they are performing now

Thrugelmir

Mission193 said:

Thurgelmir

thanks for the reply. Serious threat based on what?

Not letting the USA show audit there accounts. 

If they get delisted you can either move your shares to the HK exchange or a OTC

please research other delisted companies and see how they are performing now

The Chinese Government has long blocked all attempts for Chinese Companies to evidence the fact that they comply with US auditing and accountancy standards. In effect gaining all the benefits of a market listing. i.e. raising capital, liquidity. There's currently around $2 trillion invested in Chinese companies via US listings. Many Chinese holding companies are actually registered in the Cayman Islands. Own no assets themselves. Instead have "contracts" with the physical operating companies on the Chinese mainland. Chinese mainland companies are accountable to the state first, shareholders second. That's written into their constitution. 

Interestingly 53 companies were kicked off the HKEX for failing to submit their audited statutory accounts in time in 2021. Still an emerging market. With Corporate Governmenance standards light years behind those of companies listed on the London markets. 

Thrugelmir

Deleted_User said:

Thrugelmir said:

Interestingly 53 companies were kicked off the HKEX for failing to submit their audited statutory accounts in time in 2021. Still an emerging market. With Corporate Governmenance standards light years behind those of companies listed on the London markets.

HK has long been a developed market, whose stock exchange has also attracted listings from the mainland China (which is very much still emerging).

Now very much under Chinese influence and control. Beijing ultimately gets what it wants, irrespective of how long it takes. The Chinese mindset is very much strategic. 

Thrugelmir

Deleted_User said:

Thrugelmir said:

The Chinese mindset is very much strategic. 

This is very dodgy racial stereotyping.

Only if that's the way you wish to twist and take out of context what's been written.  

Wonky_Dan

With everything that's going on with Russia/Ukraine at the moment I've just cut my passive Emerging Markets exposure down to 5%

I'm not sure I really want to be investing my money in countries that are so clearly at odds with developed nations. Luckily Russia only made up a small amount of the EM index but what happens in future if trouble flares with China and they go down the road of closing their markets, seizing assets, defaulting on Western debt etc. Same with India?

TheWoodler

I have significant ethical concerns concerning Chinese stocks given their government's well-publicised human rights record and now their stance on the war, which may also make them riskier longer-term. Not a market I want to be involved in at all. 

I try and put my money where my mouth is and as far as I can won’t buy anything made in China either. 

Thrugelmir

Deleted_User said:

Thrugelmir said:

Deleted_User said:

Thrugelmir said:

The Chinese mindset is very much strategic. 

This is very dodgy racial stereotyping.

Only if that's the way you wish to twist and take out of context what's been written.  

Sinophobia is on the rise. The phrase "the Chinese mindset" tends to come over as sinophobic, whatever your intention. You could make points about the different relationship between politics and business in China and the UK while avoiding such phrases. Try it.

Stick to Facebook if you wish to debate something else than savings and investments.