$2B fine but up 6% pre-market lol
Being fined for monopolistic behaviour is extremely bullish, Alibaba can finally join the likes of FB, MSFT, GOOG, AAPL, AMZN
I’m long Alibaba and a few other Chinese tech stocks. But the risk is that regulation is arbitrary, there’s no legal process, things just happen.
Search for the story on Google to bypass the paywall.
I think Alibaba, Tencent and JD are probably good long term investments. I’ve used the Baillie Gifford China Growth Investment Trust (BGCG) to invest as they have a good track record with their other funds - hopefully they can avoid any really bad investments with their research.
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.
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 - Chinese Starbucks rival Luckin Coffee fires CEO and COO for 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.
+~5% pre market.
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.
Not sure the war games will affect baba etc…. to much.
I would have thought(short term at least) companies like TSMC with a global market would be more at risk especially if there is a de facto blockade around Taiwan during the “games”.
But who knows these things!
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
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