BABASheep
2022-03-25

$Alibaba(BABA)$The topic of delisting had surfaced again. This time, a report that the PCAOB (SEC) refuted that an agreement with CSRC with regards to Audit is "Premature". So they can still act to delist ADRs if they cannot satisfy HFCAA standards 3 years in a row. (Yes, copied from Baseball).

For the 6 Chinese ADRs in the warning list, the deadline will be 2024. All 249 Chinese ADRs will be on that list after their Q4 Final report. This problem had been around for about 20 years. 

To me, the risk Of delisting is about 10%. HFCAA came about during Trump's administration. A lot of it was due to Geopolitical tension of Tariffs. Of course, there was also Ruixing and Luckin Coffee which provided the ammo but the US have their Enron too.

Mr Liu He had already optimistically said that the CSRC is in constant communication and he is optimistic about arriving at a compromise soon. I'll take his word against any News Agencies's report anyday. We are all experienced investors.

The CSRC is not in an disadvantaged position at all. The US investors are already too deeply entrenched for 20 years in ADRs. Forcefully delisting 249 Chinese ADRs? You can imagine the implications in a capitalistic society And China's reactions. The US economy is already choppy, they don't need more on the plate.

The question of FACE. If push comes to shove, China owns $1.05 Trillion of US debts. Mr. Liu He is to be respected during the negotiations. Chinese saying, killing 1000 but sustaining 800 casualties. 

So, in conclusion, a compromise is a win-win for all parties. The NYSE and SEC gets their reputation and the ADRs get their fundings. We, small investors get rich, of course.


# HKEX Stocks Opportunities

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  • Upswing118
    ·2022-03-26
    Long term is still great. They've many biz or subsegment untapped yet.
    Looking fwd to those.
    I'm keeping this as most of the naysayers are fr you know where😡
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    • Upswing118Replying toBABASheep: 
      Nice way of seeing it🍻
      2022-03-26
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    • BABASheep: 
      Im actually thankful to them for helping
      2022-03-26
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    • BABASheepReplying toBABASheep: 
      me collect a lot from $75 to $90. Averaging up now till May whenever I see a good buy.
      2022-03-26
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  • Downton
    ·2022-03-26
    With the Geopolitical situation these days, anything can happen. No longer the rational America we are used to.
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    • BABASheep: 
      History shown that Politics is about money, Money is about politics. No eternal enemies, only eternal benefits.
      2022-03-26
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  • feelond
    ·2022-03-25
    since the government have confirmed support for all Chinese stocks trading in the USA, and requested them to follow regulation in order to continue trading properly on the stock exchange in the United States.
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    • YTGIRLReplying toBABASheep: 
      Definitely you are right about this, the fact VIEs to go ahead with their approval means everything.
      2022-03-31
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    • BABASheep: 
      I’m sure CSRC is confident of a settlement. That’s why they allow VIEs to go ahead with their approval.
      2022-03-25
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  • RKT
    ·2022-03-25
    Delisting may be a possibility and threat is still hanging unless governments settle their issues at the highest level. The chances are it will happen and the question is when!!
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    • BABASheep: 
      Boy chase girl. Girl snubs boy. Boy did great, finally won her heart and then Boy cruelly dumped her and went home.
      2022-03-26
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  • Humbly
    ·2022-03-26
    Given the Alibaba is dual listed in HK and US, international investors can just goto HK to buy their shares without concerns about withholding taxes. Other Chinese listed ADRs can do the same.
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    • BABASheepReplying toBABASheep: 
      Too much implications, thus my confidence ADRs will not be forcefully delisted.
      2022-03-26
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    • BABASheep: 
      True. The problem is that of Pension funds and other US Govt funds that cannot own overseas stocks. They will have to sell out thus affecting the stock if delisted. They will have to sell at a low.
      2022-03-26
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  • Moonshot
    ·2022-03-25
    Having 1.05 trillion of debt is not an advantage but a nightmare. US will be laughing at China for holding something that they can devalue or freeze on asset at any time. Russia is the best example.
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    • BABASheep: 
      Yes, those were in part because of China’s trade surpluses. China sells the debt treasuries will trigger a bond market collapse, US interest rate will hit the roof. China will suffer from strong Yuan
      2022-03-25
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  • bouncyo
    ·2022-03-25
    Alibaba has always been a company I am optimistic about. I think this company can invest in the long term.
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  • Jenjorjack
    ·2022-03-28
    This will always looms as incumbent power trys to stop the rising of a rising power. It will probably drag or escalate. Why should one allow their competitor tap their capital markets? Pls like thanks
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    • BABASheep: 
      Yes, they did not expect the disciple to upset the master. Now panic mode but a little too late to stop the Giant Panda.
      2022-03-28
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  • XianLi
    ·2022-03-27
    It is a complex situation Alibaba meet now. But I believe the dilemma can be overcome and Investors can make profits from it.
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    • BABASheep: 
      危机 , with danger comes opportunities
      2022-03-28
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  • 3d35dd3
    ·2022-03-25
    US really smelly. Keep threaten china to delist as they scare losing to china economy or not standing with them against russia
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    • BABASheep: 
      AliExpress is doing brisk business in Russia now, UnionPay and RMB running the show.
      2022-03-26
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  • MR_Wu
    ·2022-03-25
    Even if Alibaba is delisted, it can still buy and sell in the Hong Kong market.
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    • BABASheepReplying toMR_Wu: 
      Agreed. Ultimately, the Business and the Management speaks volumes in the long run.
      2022-03-25
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    • BABASheep: 
      Yes, OTC and a little known area called a “pink” market listing.
      2022-03-25
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    • MR_WuReplying toBABASheep: 
      But it's unfortunate that this will affect investors' perceptions of Alibaba.
      2022-03-25
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  • gfy
    ·2022-03-26
    Rumours can fuel emotions, hold your fort.

    Ask "Is this a value Buy?"

    Would you agree?

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    • BABASheep: 
      I like it when it was $120. I loved it when it was $74. Good luck.
      2022-03-26
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  • JesseRW
    ·2022-03-25
    Maybe, just maybe. Chinese stock market will serve as safe haven better the gold.... im just saying :)
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    • BABASheep: 
      If the RMB internationalises, US companies will start listing in Chinese Stock Exchanges.
      2022-03-25
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  • InvisibleP
    ·2022-03-28
    What will happen to the stocks if delisting were to occur? Buyback before delist?
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    • InvisiblePReplying toBABASheep: 
      Thank you for the valuable information
      2022-03-28
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    • BABASheep: 
      Convert to HK $9988 shares. 1 ADR = 8 HK shares. Fees and forex charged. CitiBank is the custodian, your brokerage may do the exchange for you.
      2022-03-28
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  • Reaper709
    ·2022-03-26
    if Baba were a US  stock it would be 3k+ by now😎
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    • BABASheep: 
      In the short run, market is voting machine. Long run, market is a weighing machine. BABA’s market is AMZN X 4.
      2022-03-26
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  • Jeffchew
    ·2022-03-26
    what are the 6 Adr in the warning list??
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    • BABASheep: 
      ACM research, Zai Lab, BeiGene, HutchMed, Yum, latest WeiBo.
      2022-03-26
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  • tinkie
    ·2022-03-25
    I think there are still many excellent companies in Chinese concept stocks.
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  • WalterD
    ·2022-03-25
    2 years ago i bougth BABA for 256 US$ following several warm analysts reccomendations. than sold quickly for small gain. lucky me. yesterday i bougth again for 116. hong kong down today 7%. not so lucky...we'll see
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  • YTGIRL
    ·2022-03-25
    The company is buying back 10% of the entire float, will most likely get over $200 this year. It’s a buy and hold stock
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  • HilaryWilde
    ·2022-03-25
    I believe that Alibaba will not be delisted, don’t worry.
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