Alibaba - BABA - Share Chat

I think investing in China might be best via a fund that will react to issues like this threads title. Unless you are watching the markets well you could lose a lot but I guess that is the same everywhere in reality. I just don’t feel super confident in my ability to spot a potential big loss in China.

Jack Ma’s company was added to the list of Chinese companies that are subject to a banning order from the SEC if they do not provide access to audit files.

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Just give them the documents they want so they can shut up. Honestly, its the USA who is the aggressor against China. Making themselves look like donuts on the world stage.

It can be argued that the US and China are as bad as each other in the realms of geopolitics, but thats a whole other story.

At least in this case the US is absolutely right for the regulator (SEC) to enforce the oversight/audit rules for listing on US stock exchanges, if companies aren’t compliant with those rules then they shouldn’t be listed on the exchange, have to play by the rules so to speak -

One Chinese company already got caught up in accounting fraud - https://www.axios.com/2020/05/12/luckin-coffee-fires-ceo-coo-accounting-fraud

As a slightly related note that’s also been in the news recently, the accounting practices of Evergrande and other property companies in China is questionable at best and worth a read, whole set of dominos waiting to fall over there.

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Some positive news would be welcome today. With the Chinese Navy playing war games it would nice to see the macro sentiment not wipe out a good result.

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So BABA have less than a month to comply with the SEC or delist in the next three years. Whats the play here?

Think of it like a token burn

Converging of the previous secondary listing in HK to a now a dual primary listing gives them both access to mainland market when it opens up the stock connect program. Also gives them more of a fall back plan and leverage from there side on regards to the SEC delisting negotiations.

Hi Rajan

You’ve been looking into this for nearly 9 months? Any ideas what happens if a delisting off the US exchange was to occur for Baba and any other US listed Chinese ADRs? The dual primary listing and murmurs coming out from HK are that they’d be able to convert over into the HK listing. I would assume this would impact many of your users and I hope its a thought for Freetrade. I would like to set up a potential action plan in advance rather than Freetrade reacting behind schedule and when it’s too late to do anything and sold to cash at a major loss with no chance to weather the storm longterm.

Would Freetrade be able to facilitate this and also can they still be held in an ISA if this was the case via the HK listing or would we no longer have access and be sold to cash?

@Freetrade_Team @Viktor @acamp

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Hi @Bailey2k4

Rajan no longer works for Freetrade I’m afraid. As a holder of $BABA I too would like to know and plan accordingly. The problem remains that if they move to an exchange that Freetrade doesn’t support the outcomes for holders aren’t favorable, in likely outcomes I’m planning like this -

  • Forced Sale
  • Holding illiquid until Freetrade support HK
  • Illiquid until Freetrade can support a transfer out
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The main concern is that I hold it in an ISA so if they can’t do anything with it or if it can then only be held in GIA then its going to impact my ISA holdings and moving around of said holding to get it back in Baba if at all with the ISA protection.

As always their response will be reactionary so by that time the news will be known and have sold off heavily. By having an idea of what the options of moving forward will be we can all plan accordingly.

It may be that they can just move it across to the HK equivalent in an ISA with little impact and that’s fine many may choose to weather the storm and volatility and wait knowing they’re still in Baba but listed on HK.

If they can’t do anything with it then some may feel its better to sell off on a good news day rather than be sold to cash after its/if its happened.

Obviously its easier to make an informed decision knowing the plans in place FT have and at least have they spoken to those they partner with to see the feasibility of what would be possible surely this is going to impact a large number of users? Whether Baba or many other of the stocks (admittedly a lot aren’t ISA eligible and GIA only)

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All China stocks are up now, hope it a long trend and we see 120 again soon

I made the decision today to get out of mine at about a 30% loss. I sold half and will get out in a couple of sells over the next few weeks. I still think very long term (if all the very unpredictable geo politics falls into place which for me is a big if) it’s a solid company.

I don’t see it doing too much soon so I came to the conclusion that there are other places I’d prefer to put that money. Which probably means it’ll shoot up some time soon :joy:

Gonna be good day today!

I love China stocks so much!

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Today gonna be new lower, -10% in HK

Hi @BlueSonic

You have to be very careful sharing copyrighted content. See here

Good morning @BlueSonic

Please play by the rules of the community, it’s not a big ask for you to stop posting copyright material. I posted a link underneath the screen shot.

I’m happy to discuss your particular concerns and why you feel the rules don’t apply to you via DM.

Finally after holding for over 1.5 years sentiment has started changing for the better. It was about time.

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I am going to sell (with profit) when it reaches 119. For me it’s too risky :wink:
Let me repeat you your own words ;/