BABASheep
2022-03-11

$Alibaba(BABA)$So the SEC decided to timingly issue a warning against the 5 Chinese ADRs. This issue had been a dead ender for the last 10 years or more. Only the recent spat between China and USA brought it into the lime light.

The contention is the Chinese Law regarding audits and data securities. That was what ended ANT & DiDi.

So, the 2 parties namely SEC & CSRC is in negotiations and issue a statement that theyare close to finalising a solution. Hence, the CSRC gave the go ahead for VIE listing if it met with their approval. All these are well documented.

Revisiting this issue at this time, I believe it is geopolitically motivated with China's refusal to be coerced into the Russia, Ukraine situation. Thus a little nudge.

So, I will believe the SEC when they force 250 Chinese ADRs to be delisted in 2024. It will destroy the US investors too. 

The SEC cannot even rein in Elon Musk. 

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Comments

  • blinkix
    2022-03-11
    blinkix
    Anyway, Didi hurts investors.
    • BABASheep: 
      If one DiDi did all that damage, try delisting all Chinese ADRs. Kill 1000 but sacrifice 800?
  • 股勇者
    2022-03-11
    股勇者
    political war between two superpower ... investors are caught in between and absorbing the losses
  • GregoryRichardson
    2022-03-11
    GregoryRichardson
    really stupid behavior! China now has the most stable stock market, and companies with the most growth potential,a lot of which are worth to invest.
  • zoomzi
    2022-03-11
    zoomzi
    I think the current valuation of Chinese companies listed in the US is already very low, which is worth our investment.
  • twizzy
    2022-03-11
    twizzy
    In the long run, buying Alibaba at the current price is definitely a good investment.
  • zingle
    2022-03-11
    zingle
    The SEC will always only attack foreign companies. They can't even solve Musk's problem.
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