To The Moon

$Alibaba(BABA)$Retail Investors Are “FEARFUL”

1] FEARFUL of delisting BABA ADR under the US Public Accounting Act, if it does not complied by 2025. Act includes 2 major matters: open book on Principles of Book-Keeping & Accounting AND company must not have any Chinese Govt Link or any Chinese Govt on BABA Board of Directors Membership.

2] FEARFUL of delisting by China Regulatory Act on Data Security Law & the Personal Information Protection Law.

Chinese Regulatory requirements & Compliance:

a] BABA have setup a high-level Committee to oversee strict compliance to Chinese Regulatory requirements.

b] BABA have already been penalised for US$2.8B antitrust fine.

c] BABA has pledged to contribute US$15.5B to the “Common Prosperity” Fund by 2025.

d] China Regulators reportedly Suspend Alibaba Cloud Partnership, which again, in my opinion is a good news to delink the Chinese Govt linkage to assure US Regulators. In a way, Chinese Govt is “quietly” helping BABA.

e] in discussion to divest the Twitter-liked Weibo, as this is not the core business.

f] BABA has a Secondary listing in the HKE (09988) to transfer the BABA ADR to HKE or followed what the Chinese Govt have practiced during the 3 big China Telcos and the 3 big Banks that have transferred their US ADRs back to Shanghai or now can used HKE as a Gateway or can used DiDi as a “precedence”.

g] There are many open options out there to explore alternate listing internationally, other than HKE. China & Singapore Govt have mutual respect and mutual trust. Both have strong CyberSecurity Law, Personal Data Security and Legal Business Framework. A Singapore Stock Exchange listing to transfer BABA ADR to SGX would also be a big plus to US Govt, as Singapore Govt is also a good friend of US Govt. One of the options worth considering, with BABA trying to capture one of the world biggest combined South East Asia market.

What is on the Card?

Just to highlight my Thought….

a] concentrate on BABA core business on e-Commerce, Cloud Computing & related core-business acquisitions.

b] BABA is the largest e-Commerce company in China serving majority of the 1.2B+ Chinese people.

c] BABA is the world largest e-Commerce by GMVs.

d] BABA unveiled an ambitious goal of US$100B GMV for Lazada in South-East Asia markets.

e] Noted an article: Quoted, “Former Vice President of the US Al Gore’s Generation Investment Management invests heavily in tech companies, one of them is BABA.”

f] Noted an article: Quoted, “Voted by Gartner Cloud Computing as the First in the World on Alibaba’s Cloud Infrastructure Capability.”

Short-Term: BABA Share Price will keep testing the Bottom and scale up & down, as major Investors & retail investors tried to dump the shares due to “Fear of the Unknown”. Sooner or later, these fears will subside & slowly become clearer.

Conclusion: I am LONG on BABA.

Disclaimer: This is the first time I am writing an article/Post. Right or Wrong, my own reading, observation & opinion only. I am also not affiliate and/or have any relationship with any company. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. I could have overlooked key facts and risks, as new data and/or infor might become available at the time of my writing.