Quote Originally Posted by SBQ View Post
When I held BABA all the way to $320, there was absolutely ZERO news about China's gov't imposing controls. At that time, the sentiment was the spin off Ant Financial was the big thing reflecting BABA's high stock price. There was no knowing from that moment in time, if the CCP would step in. Hindsight I accepted the issued fine, and held long on the stock, thinking that it was a one off kind of deal. Boy was I wrong and now the CCP wants this "common prosperity" which is straight out of Communism books.

What the CCP wants in China is exactly that "economic isolation". You know they get upset when China can't buy up resources around the world, buy houses in western nations, yet no one outside of China can own property in China. What kind of deal is this? I'll tell you. It's all part of China's economic plan to promote their dominance around the world, while promoting isolation in their largest companies. They didn't want DIDI or the some 100+ Chinese corporate companies on the US stock exchange. They want to claw them back into China and the wealth of this will be retained within the China gov't. Just read the recent news and the trends where they've taken a major stake in Ant Financial. What does this spell out? Chinese gov't owning stake in Ant Financial??? This means the new company will not be listed in the US exchanges as political stakes in companies are not allowed. If BABA is tied to this, well i'm afraid it will be delisting time. Sometimes the writing is so clear that people don't believe it. So the media has to exaggerate China news a bit just so people look a little closer.

Look back in recent history, I recall when the Shanghai stock exchange crashed about 10 years ago were the gov't had to step in and bail out. If I recall correctly, this was very significant as the fault was investors were gambling in the same way we see the Meme stock gambling. So their response was to in CCP fashion, impose more regulations. Regulations like stopping families from letting their child spend too much time on the computer.

When Trump was elected and caused friction with China by implementing trade tariffs, people had the same view back then as today with BABA. Yah China has the largest middle class, China is going to be #1 in this and that. You know, they're a major economic powerhouse. Well just like back then, China's economy depends on export. When an exporting nation is dependent, who are the ones buying their products? It's rich nations like the US. Hence as Jim Cramer once said about this issue "who will win, China or the US?", he simply said, "the US because we have the wallet". He's right because like a retail shop owner, the person that has the wallet 'commands where they can spend it'. Western nations can easily pull their manufacturing out of China (well they're already doing so now). The sad thing is when China gets desperate, they will resort to stealing or theft of IP. Look how many times they've been hitting NASA or the US military, hacking into their computers.
Lots of good food for thought there. You may be right. I still think the concerns are a bit overblown or will be resolved by the weight of economic necessity, but am happy to admit I could be wrong. Time will tell. Like I said, the risk is there, dont bet the bank on this one or China stocks generally, that's for sure!