Alibaba (BABA) 💻 - Share Chat

The government already gave them their ‘fine’, so I think that’s mostly settled.

With regard to a potential shock from Evergrande, I don’t really factor this as I’m a long term investor and it has little effect on the fundamentals of Alibaba.

1 Like

The government already gave them their ‘fine’, so I think that’s mostly settled.

Aye but who knows what the CCP will demand next…

It’s a rough year :sweat_smile:

1 Like

Yikes! I’m long on $BABA :grimacing:

1 Like

I hope Freetrade can get access to Chinese markets soon. I’d really like to buy into some Chinese companies without the risk of losing my investment due to USA/China squabbling.

6 Likes

I’m not sure about this. I’d be long BABA if I didn’t think that Xi Jinping has an eye of history. They have huge wealth inequality in China and part the great levelling up me as dragging down some of these huge billionaire companies.

I don’t think it’ll go to $0 but I think it could be low for quite a while.

1 Like

It’s hard to decide to sell at a loss or ride out the never ending downward spiral

1 Like

I don’t mind it being low, I just don’t want to be exited if they delist. My holding is in SIPPs so I can hold for a very long time and average down if they restore some confidence.

2 Likes

The issue here is not so much this:

The Chinese government is putting pressure on companies to list in China rather than the US. The article indicates that with the words ‘Chinese regulators will restrict companies’ abilities

If the listing is “ditched” does that mean my NYSE shares of Alibaba will be force sold?

Yes it does

Depends on what they do, but when you own $BABA you don’t actually own and Alibaba stock.

Will be a learning experience, at least! Buy stocks on the original exchange where possible.

@hsmith that is by no means certain. Ali Baba may offer ADR holders common stock on the HSE as happened when China Mobile delisted from NYSE. In this case the conversion may be offered on another Chinese exchange.

@AchillesFirstStand you will have to find a broker that does trade on the exchange that trades in any common stock that you may get offered.

1 Like

There is a related article on the BBC

nb. it says

“Didi said it is preparing to list in Hong Kong, and shareholders of its US listed shares will be able to convert their holdings to those on another stock exchange.”

2 Likes

What happens to the shares bought on the Freetrade app if Baba gets delisted?

3 Likes

Hi @7iain7 :wave: welcome to the community, it’s a shame your first post couldn’t be about something more positive. The problem is that nobody knows exactly what would happen . Options include -

  • Pull the rug out and you loose your money (unlikely)
  • China relent and it stays on the NYSE (also unlikely)
  • They move all shares into their Hong Kong listing and as FT don’t support HK you’d probably need a new broker who could take them off your hands. As @bitflip mentioned above

Ali Baba may offer ADR holders common stock on the HSE as happened when China Mobile delisted from NYSE. In this case the conversion may be offered on another Chinese exchange.

Technically you don’t own any shares in AliBaba you own shares in a shell company based somewhere like Bermuda or The Cayman Islands. See above video for more info.

1 Like

Thank you very much for the reply

1 Like
1 Like

It’s quite amazing western authorities were all OK with it until the markets start getting spicy.