Alibaba - BABA - Share Chat

Does anyone know why this is a non-ISA share?

them’s the rules

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Anyone with a more helpful comment?

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Its an ADR not a real stock.

thanks

Then why are other UK rival platforms able to hold it still in an ISA? I may be wrong but I’m of the understanding T212 still allows it? There was some initial confusion at first but they later came out and clarified it would be accessible via ISA still? Unless anythings changed since then?

ADRs are allowed, what matters is if the exchange of the underlying security is recognised or not.

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No T212 used to let you buy it in the ISA until their compliance team realised their huge failure and forced everyone to sell and rebuy their ADRs. Finki was obviously there rolling his eyes and suggesting they use his API :joy:.

Can you confirm when you last checked. Was it recently? Because they said that and then they updated saying that was no longer the case. A guy in a WhatsApp trading group who uses them also said its still available to purchase in an ISA though. Also Hargreaves used to let you have them in an ISA also is that no longer the case?

Just rechecked and Baba is definitely still available in the ISA. Nio was removed as were many others but Baba is still allowed hence my question to Freetrade.

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I’m pretty sure some brokers allow it to be held in an ISA, the one my brother uses through the company he used to work at allows it to be held in an ISA.

Hey guys,

Spoke to support, and they realised they made a mistake and Alibaba is now available through the ISA!

Hong Kong stock exchange is recognised by HMRC, so we can hold it in an ISA without any problems.

I’ll be selling them from my GIA and buying them in my ISA today!

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Quite a quiet thread through its recent turbulence so thought I might share some thoughts. Alibaba as a business is solid, they’re even more diversified than Amazon (not always a good thing, fan of McDonalds here with a layered business model).

They have good free cash flow, more than healthy margins. Their biggest threat comes in two parts (in my view): The CCP/Uncertainty - they (Alibaba and related enterprises) may be forced to split up, The public - The horrible 996 working hours which have allowed the tech sector to level up so quickly and the public’s patience in it is starting to wane.

Two big factors to consider while considering investing:

  1. Will the CCP loosen its grip on the tech and financial sector any time soon?
  2. Ethical Investing

As always this is not investment advice, make sure as always you do your own research.

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I’ve always favoured JD as company, but BABA’s value is getting pretty hard to ignore right now.

This stock basically feels like a binary option at this point, in that either it’ll return to fair value (~double) or it’ll drop to zero. I might pick up some LEAPS to take advantage of asymmetric risk.

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Really important point you highlighted there. You can always be smart and make sure you’re buying up BABA at it’s floor/lowest price but it’s facing a dramatic and uncertain future. If China loosens it’s grip, the stock will soar but if it doesn’t the stock will have some shedding to do.

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Yeah it might become a non-marketable security or in the worst case it’s technically possible that the instrument becomes completely decoupled from the value of the company. That would require a pretty exceptional political situation and have wider reaching consequences, but it’s possible.

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its a bet. but bloomberg just announced 5 mins ago on their auzzy news that the CPP are cracking down on I.P. violations. I think that may, perhaps, affect the (local) peer to peer transactions which is 80% of alibabas renvenue, but, will defo affect the international trade (fake/rip off western goods), which is a fraction.

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Very very interesting last couple weeks with this stock. It’s trying to figure out if it’s hit it’s bottom, let’s see if the resistance will crack but some real buying opportunities these last few days.

Some big fish (primarily value investors) have been digging into this stock over the last few days. Could have hit it’s floor.

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i’ve seen that mentioned.