Anyone else get caught out by the Chinese clampdown on large IT companies?

[In Full Agreement]

I thought and still think Alibaba is a good future bet.

 

I failed no take to heart China's decision to meddle in the operation of successful IT companies and paid for that mistake.

 

I'm now wary about anything Chinese related when it comes to investing.

[johng]

4 minutes ago, In Full Agreement said:

I'm now wary about anything Chinese related when it comes to investing.

Maybe invest in a virus or vaccine lab or both ????

[guzzi850m2]

I sold my Alibaba shares when they were over 200 for a small 4-5% profit because I was getting nervous.

 

Yes I bit wary too and will wait and see what happens.

[CrunchWrapSupreme]

CCP really shooting themselves in the foot. Why would anyone want to invest in China now, when after the company gets too successful, the govt just decides to come in and grab it?

 

And if you're Chinese in China and thinking of becoming the next Jack Ma, why should you bother?

[rwill]

Warren Buffet says, "Buy when others are fearful."

 

That said I sold all of my Chinese stocks awhile ago.  The only one I have left now is JD.  Probably will sell that one too in a few days when my last buy goes from short term to long term for tax savings.

[CharlieH]

Reported conspiracy remark removed.

[Peterw42]

Buy Buy Buy, its the fundamentals of the capitalist world will live in. BUY LOW SELL HIGH.

 

These crackdowns are a good thing, at the moment Tencent has a monopoly on music copyright, DiDi Global pays the drivers low wages, Alibaba can do anything they like with customer data/privacy. The crackdowns are to control monopolies, force fair wages and conditions, protect customer data and privacy. No different to US antitrust laws.

 

The only thing stopping me from buying at the moment is the hit I will take exchanging the south pacific peso ($AU) into HKD, CNY etc

[wombat]

1 hour ago, Peterw42 said:

The crackdowns are to control monopolies,

and also share prices?...'buy low sell high'....is there a register that shows what shares the Chinese Govt owns in these companies?

[malathione]

18 hours ago, guzzi850m2 said:

I sold my Alibaba shares when they were over 200 for a small 4-5% profit because I was getting nervous.

 

Yes I bit wary too and will wait and see what happens.

Likewise and then bought back recently. I think BABA is way undervalued even with the risks. In fact it was undervalued even at $220+.

[DBath]

I’d be wary about anything Chinese -

 period. 

[chalawaan]

I was involved in supply chain for two Chinese based wholesalers in a sino/western SME but got out just before Hong Kong went to the dark side.

 

It's odd, but a few hours ago, I was thinking to myself that this move to authoritarianism in commerce will likely lead to significant self-inflicted pain for generations.

 

The US cannot seem to pick winnable wars, and the PRC cannot seem to not meddle in human nature with catastrophic outcomes that last for decades, the one-child disaster, the cultural revolution, the deliberate obliteration of species, and so on.

 

So while I dodged a bullet, Xi lit a wildfire that will be his nemesis in history. IMO.

[chalawaan]

4 hours ago, Peterw42 said:

Buy Buy Buy, its the fundamentals of the capitalist world will live in. BUY LOW SELL HIGH.

 

These crackdowns are a good thing, at the moment Tencent has a monopoly on music copyright, DiDi Global pays the drivers low wages, Alibaba can do anything they like with customer data/privacy. The crackdowns are to control monopolies, force fair wages and conditions, protect customer data and privacy. No different to US antitrust laws.

 

The only thing stopping me from buying at the moment is the hit I will take exchanging the south pacific peso ($AU) into HKD, CNY etc

I saw Chamaths YTube take on this, and I still think that with a juggernaut the size of China, the law of unintended consequences is merciless.

If you think there's still money to be made because the market has priced in the risk, more power to you, but it's still an unacceptable risk for me.

 

If you can find it, I recommend a very rare and out of print book co written by a Chinese author called "The Chinese mind game". 

[Alex2554]

When you buy stock in BABA, you technically don't own shares in Alibaba Group itself, but in an offshore shell company that has a claim to its profits. If you buy BABA on the New York Stock Exchange, you are buying ADRs that in turn have a claim on the Alibaba VIE. If you buy Alibaba as '9988' on the Hong Kong Stock Exchange, you own a stake in the VIE directly. BABA shares are convertible to 8 shares of 9988. Either share represents ownership in a VIE, not the company itself.

That presents some challenges. VIEs are not technically ownership claims on companies but contractual agreements to part of their profits. This means that BABA shareholders have no vote, and no direct ownership in the company's assets. Some have speculated that the CCP could ban VIEs, leaving Western shareholders holding the bags. On the whole, Alibaba's VIE structure is a real risk. 

[CrunchWrapSupreme]

Although... I do enjoy this split screen function on my Chinese Communist Huawei phone. It allows me to keep YouTube playing in a small portion of one side, while I do stuff in the other, for a YouTube Premium-like background music experience without paying for it. Take that, Google! Bwahaha!

[DBath]

9 hours ago, chalawaan said:

I saw Chamaths YTube take on this, and I still think that with a juggernaut the size of China, the law of unintended consequences is merciless.

If you think there's still money to be made because the market has priced in the risk, more power to you, but it's still an unacceptable risk for me.

 

If you can find it, I recommend a very rare and out of print book co written by a Chinese author called "The Chinese mind game". 

I'm more than a little baffled that people in general fail to see the inner workings of the CCP and how Xi Jinping operates. There is a big power play taking place between the Chinese gov't and big business in China. 

 

And you are making the right assumption that it's too risky to invest in anything tied to that country at this time.

[placnx]

On 8/20/2021 at 6:00 PM, CrunchWrapSupreme said:

CCP really shooting themselves in the foot. Why would anyone want to invest in China now, when after the company gets too successful, the govt just decides to come in and grab it?

 

And if you're Chinese in China and thinking of becoming the next Jack Ma, why should you bother?

Actually Xi Jin Ping is shooting China in the foot!

[DBath]

50 minutes ago, placnx said:

Actually Xi Jin Ping is shooting China in the foot!

Jinping is doing everything he can to take China back to the days of Mao Tse Tung, IMO.

 

Edited August 21, 2021 by DBath

[Chelseafan]

On 8/20/2021 at 9:01 AM, johng said:

Maybe invest in a virus or vaccine lab or both ????

 

You can joke about it but I had to do a lateral flow test yesterday so went to Boots to get my pack and on the box it said

"Made in China" - How ironic given that the virus originated from China

 

 

[placnx]

14 hours ago, DBath said:

Jinping is doing everything he can to take China back to the days of Mao Tse Tung, IMO.

 

Unfortunately, XJP now has technology to enforce 1984 that Mao could not even dream of.