the drop is a gift

NING667
2021-07-09

$Alibaba(09988)$

Alibaba is an excellent long term investment opportunity right now. Is this drop related to BABA?, a BIG NO. Some investors who are selling off this stock are thinking that Ant will experience the same thing as DIDI. In the case of DIDI, chinesse regulators made comments that there were some problems related to the management of data, so what DIDI and the investment banks should have done is to stop the IPO, but the high fees from the IPO were extremely attractive and they did not care how that could affect DIDI's investors. Now, the press are saying that the guilt is from chinesse regulators (very conveniently). The case of DIDI is not the same as Ant since chinesse regulators are making a strong follow up of all the changes that Ant is making. There is progress; Ant now is a holding entity, not a fintech anymore and it has to comply with capital requirements as any other financial entity. The data will be managed by a joint venture company between Ant and state own companies; but we dont know who will take the lead in that joint venture. Ant reached agreements with chinesse commercial banks to increase its fee from Alipay services in 80%. That will offset the decline in business from Ant's consumer loan business line. Therefore, this sell off does not make sense at all, since the Ant's IPO will take place whether bearish people like it or not, and the performance of the company is even better; adding to the fact that Alibaba has already paid a fine of 2.8 billion $. So, this drop in the stock market price is a gift!

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Comments

  • 我i168
    2021-07-09
    我i168
    Sounds good [Cool]
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