Don’t try to find reasons why the price keeps declining or what it’s really worth and where it will be tomorrow or a year.
If you are a stock or options trader then you have your reasons for when to buy and when you sell based on charts and experience.
Only trade Baba shares… these are shares of a Cayman Island VIE structure. You own zero assets.
Chinese stocks are not really investable and will most likely be delisted eventually.
Stick with short term trades avoid long hold risks. I held the stock for 6 years and it was a mistake. For long holds stick with US businesses, at least you know what you’re getting for a share.
Eventually will be delisted along with other Chinese stocks.
I keep seeing people posting how cheap this stock is and how much it should be worth…do your homework, when buying a Chinese ADR you “DON’T” own any assets in the company. The reality is you own the share of a Cayman Island company. How can you value a share when you don’t own the asset but merely a reflection of the financials?
There is a reason why Chinese stocks are tumbling regardless of whether China will or will not be the future economic power. It’s a communist system and they can change the rules at any given time.
Do your homework and invest wisely! Unless you’re here to gamble.
All Chinese stocks are fake ownership. You don’t own any shares in the actual company. Your ownership is in a shell company based out of Cayman island…
How can you value a stock when there is no ownership? How can you dictate what the stock is worth?
Eventually most of not all will be delisted anyways. So many great businesses in the US. Want to gamble just buy crypto’s.
This is a sample taste of owning a Chinese company. If you buy it be prepared for these drops. Only fools will keep forecasting what the value is worth or where the stock should be at. Wake up! This is a Chinese company under the rule of a CCP government. Stop comparing to US stocks. If you buy be prepared that it could go much much lower and it could swing the other way but that’s what you are buying…. A stock that is totally driven by politics. I see some comparing Baba to Amazon… what a joke!
"The Chinese government could determine that the agreements establishing the VIE structure do not comply with Chinese law and regulations," which "could subject a China-based Issuer to penalties, revocation of business and operating licenses, or forfeiture of ownership interests," the SEC warned.
"The Chinese government could determine that the agreements establishing the VIE structure do not comply with Chinese law and regulations," which "could subject a China-based Issuer to penalties, revocation of business and operating licenses, or forfeiture of ownership interests," the SEC warned.
"The Chinese government could determine that the agreements establishing the VIE structure do not comply with Chinese law and regulations," which "could subject a China-based Issuer to penalties, revocation of business and operating licenses, or forfeiture of ownership interests," the SEC warned.
I keep seeing people posting what this stock is worth or should be.. I also see people posting buy and keep it for a few years. While no one can predict the future it’s perhaps important to know what your investing in. All Chinese stocks are set up via a VIE structure. It’s a complicated structure. China does not allow foreign ownership of its businesses. As a go around Chinese firms set up a cayman island shell structure where shares in the company would only reflect the financials of the Chinese company. A US shareholder owns “zero” assets of the Chinese company when buying a Chinese stock. You can’t compare a Chinese stock to a US stock where investors actually own a share of the business itself. How can you even value a Chinese company when you don’t even own a share in the business.
I bought Baba and Msft about the same time 6 years ago. Baba was purchased at 110 and today is trading at 160 after 6 years of holding onto this stock. That’s around 7.5% annual return. I bought Microsoft at 52 the same time and it’s trading at 303 today or 80% average annual return. Now tell me which has offered a better return over 6 years??
Stick with US businesses. I learnt my lesson and will surely exit Baba as soon as I get the chance. For as long as CCP is in power these volatilities will remain. I have been through this roller coaster for 6 years now and keeps getting worse.