ahminus t1_iy30juw wrote on November 28, 2022 at 10:41 AM

> Yes, an investment in BABA is an investment in the Chinese economy

No, an investment in BABA is an investment in a Cayman Islands holding company which the CCP could just say is "zero" at any point.

Malevin87 t1_iy32ltr wrote on November 28, 2022 at 11:09 AM

Many US stocks are almost "zero" too since 2021 highs.

MarkOfTheBeast69 t1_iy70ihg wrote on November 29, 2022 at 5:21 AM

This.

ProjectENIS t1_iy7vgfi wrote on November 29, 2022 at 12:09 PM

That's the big one; until the VIE structure is better defined with respect to the Chinese legislation, this is a speculative play only slightly better than crypto.

The bull case would be the CCP backing down and making this a legitimate way for non-Chinese to hold ownership in a Chinese company, but even as highly regarded as I am, I can't convince myself that this is happening with the current regime.

The bear case would be a crackdown (again), driving prices down (again)

I think OP is missing out on the worst-case scenario, though, where at any time, a simple statement from Xi could render BABA shares less valuable than the 10 or so bytes of storage space my trading app allocates to it