Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I own $BABA too, but just to be clear, it isn't a stock. Been thinking about ditching it specifically because of this risk.
Dang, your entire position you're clearing? I am in long from $177 a few years back. A decent chunk of my individual stock portfolio is with BABA, although on it's recent run I did liquidate 20% of my position.
I had BABA, JD, Tencent, YY among many other stocks. I sold most except for BABA as Chinese stocks were exposed to too much downside as a whole. Whenever Trump would tweet about China, or we had the trade wars, or China was in the media in a negative way economically, or a scandal with an owner or top executive (See JD or Luckin among others) all of the Chinese stocks would take a hit. There were just too many negatives that outweighed the positives.
I'll keep BABA as I believe it has tremendous potential, but I'll pass on the others going forward. I'd rather just invest in large U.S. stocks or ETF's/funds.
I have some BABA like most posters on this thread. After we picked up a new Volvo XC90 at the end of 2015, I liked that car so much that I eventually picked up a little Geely (GELYF) as well.
You might want to read the entire article but these are highlights
Chinese companies currently are subject to lower disclosure requirements than their U.S. counterparts, causing U.S. investors to face risks and losses.
“The Chinese government continues to block the Public Company Accounting Oversight Board from inspecting auditors’ work papers in China, despite years of negotiations,” the report stated.
Last month, Securities and Exchange Commission Chairman Jay Clayton criticized the lack of transparency of Chinese companies listed on the NYSE.
“It’s a source of frustration for us because we don’t have the same oversight with respect to operations in China from a financial reporting point of view that you do in most of the rest of the world,” Clayton said in an interview with Fox Business in April.
Lower disclosure requirements, of course. Chinese corporations are actually government corporations - managed, run, and owned by the Peoples Republic of China. All of the large ones. They don't disclose anything that the government doesn't want them to disclose. If China wants to show them to make a profit, that's what happens.
You have to realize you aren't investing in a private corporation that makes there own decisions the are independent from the PRC.
I deal with China all the time, sometimes procuring some large company here and there in China to do things like handling our companies logistics in China. The funny thing is they don't disclose it, you have to dig and search before you find that they are all government owned.
Lower disclosure requirements, of course. Chinese corporations are actually government corporations - managed, run, and owned by the Peoples Republic of China. All of the large ones. They don't disclose anything that the government doesn't want them to disclose. If China wants to show them to make a profit, that's what happens.
You have to realize you aren't investing in a private corporation that makes there own decisions the are independent from the PRC.
I deal with China all the time, sometimes procuring some large company here and there in China to do things like handling our companies logistics in China. The funny thing is they don't disclose it, you have to dig and search before you find that they are all government owned.
Not true at all, and no the Communist Party does not own Alibaba, Tencent, JD and others. China Petro, all of the banks among others, yes, but not these public corporations.
If the China government asked Jack Ma to do something in terms of provide personal info on a customer or classified/financial info on the company, would they hand over that info? Of course they would, but to say that the Communist Party owns and manages Alibaba or any of those large U.S. base listed companies is laughable.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
