sharetrader
Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 23
  1. #11
    Junior Member Popeye's Avatar
    Join Date
    Jul 2020
    Location
    New Zealand
    Posts
    26

    Default

    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!

  2. #12
    Senior Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    1,063

    Default

    Quote Originally Posted by GTM 3442 View Post
    Getting a bit risky. . . getting more complex too

    https://www.scmp.com/economy/china-e...gtype=homepage
    I normally take news from the South China Morning Post with a grain of salt. Their narrative is pro-China. As for Xi wanting a stock exchange in Beijing, well you have to also question who are the buyers? The key reason for Chinese companies like DIDI or BABA, choosing to list in the NYSE or Nasdaq is for global presence (large exposure of buyers) . Investment in China is limited (that is international investors getting funds OUT of China is limited; yes easy to send $ in) - so this move by Xi is to only self serve the domestic market.

  3. #13
    Member 101nick101's Avatar
    Join Date
    Dec 2020
    Posts
    58

    Default

    I've sold out of my position and replaced what I had catching the Lucid Motors dip king with some Disney. Makes me wonder what will happen with Nio in the future.

  4. #14
    Senior Member TeslaGod's Avatar
    Join Date
    Jun 2021
    Location
    Auckland the only city that matters with the best looking Investors and you know it.
    Posts
    911

    Default

    Quote Originally Posted by 101nick101 View Post
    I've sold out of my position and replaced what I had catching the Lucid Motors dip king with some Disney. Makes me wonder what will happen with Nio in the future.
    I dumped Nio at 50 bought more TSLA

  5. #15
    Member
    Join Date
    Apr 2002
    Posts
    75

    Default

    Craigs are advising clients to sell. But I wonder if SP is on the verge of recovering? Are there any BABA holders out there with an opinion?

  6. #16
    Member
    Join Date
    Aug 2020
    Location
    Tasman, Nelson NZ
    Posts
    97

    Default

    I have been a holder for about 18 months and am down 48%. Just doubled down yesterday in fact. I maybe crazy but this is an excellent company in my opinion. I am looking for price to double from here within the next five years.

  7. #17
    Senior Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    1,063

    Default

    Quote Originally Posted by GTM 3442 View Post
    Getting a bit risky. . . getting more complex too

    https://www.scmp.com/economy/china-e...gtype=homepage
    Personally, I only take SCMP reporting with a grain of salt. Xi has talked about another stock exchange in China, perhaps a Nasdaq of China. Main problem... China has currency controls and with their RMB pegged to the USD, it would have limited interest on a global scale. That is direct investment into China by various managed funds around the world would never be a consideration. Therefore this new stock exchange would only be a domestic stock exchange - much in the same manner as the small stock exchanges we see in small developing nations.

    China's situation is not risky and not complex. Not in terms of a Beijing stock exchange. Just like the Evergrand real estate fiasco, the risk exposure is mainly domestic. No reputable fund would ever dip their toes in those markets.

    As for Alibaba, it's stock price traded below $130 today. If this is not proof that people are not interested in investing in Chinese companies, then I don't know what it. Long bag holders are asking "when" will it rebound. Well as i've implied before, capital flows of money go where there's the least risk for the level of return.

  8. #18
    Member
    Join Date
    Apr 2002
    Posts
    75

    Default

    I try not to interfere but my wife has blind faith in her Craigs adviser. However he seems to be so out of of step with his colleagues who almost unanimously recommend BABA as an "add"!

  9. #19
    Ignorant. Just ignorant.
    Join Date
    Jan 2005
    Location
    Wrong Side of the Tracks
    Posts
    1,587

    Default

    I want to slap some money into Asia, but not China. It's easy to find an "Asia excl Japan" fund, but d*mn difficult to find an "Asia excl China" fund.

  10. #20
    Senior Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    1,063

    Default

    Quote Originally Posted by herbert240 View Post
    I try not to interfere but my wife has blind faith in her Craigs adviser. However he seems to be so out of of step with his colleagues who almost unanimously recommend BABA as an "add"!
    The NZ investment industry is a big con despite gov't FMA regulations trying to clean things up. A real shame as the NZ financial advisor is worse than most advisors abroad. They comment nothing on taxation but would gladly charge you for that information by contracting out to a tax accountant. How dare I say this is BS. Kiwi Saver funds need to be fully transparent on the entire taxation of their portfolios, but they are not.

    So this is no surprise they will have their biased view on picking stocks like Alibaba. Even great investors like Charlie Munger can have it wrong. BABA is around $122 today and it seems every time we make a post here, it's stock price is lower.

    @ GMT: be careful with that move. The capital flows of investment have been moving out of China for a very long time. Even in surrounding Asian markets pose a different level of risk. Will capital flows reverse? I don't know, not with the geopolitical issues at hand ; China vs The World.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •