I have just used the chat feature on T212. I was told that T212 are working/testing a feature to allow OTC shares to be transferred from ISA to Invest. I was not given an ETA on this. This will solve the issue of baba shares being automatically sold if baba gets delisted and goes OTC. As they will be in invest, and invest allows for OTC. However, I would also would support the notion of the shares being transferred to the HK exchange.
T212 need to solve this issue before baba gets delisted as this will affect a large proportion of T212ās user baseā¦
How does OTC actually work can someone explain? I read the help sections explanation and was none the wiser. Is it that T212 would trade the now non existent shares with a broker who has HK access?
I mean couldnāt you just sell out, withdraw from ISA and then re-buy in invest before it goes OTC? Whatās the benefit of them transferring other than the FX fees? Or would that not count against your ISA or something
Just not sure why would need OTC, it would be simpler to just have access to SEHK equities directly surely? Or am I missing something. OTC is often for less liquid and smaller companies, not a massive company like Alibaba.
I am sure T212 will prepare a solution. This baba weāre talking about, not some shite penny stock. This would affect a large proportion of the T212 user base
You just need to find out what T212 does in that case, but Iām pretty sure you wonāt lose shares. Worst case scenario is that you need to convert to cash.
Yesterday on Twitter they said they have no ETA for HK. You donāt build out a digital product in a week it could be years (if ever) that they have that ability
the two are unconnected. I have written to support to find out.
Here is a fun fact. Didi is not available on the ISA to invest so anyone holding Didi stock was only on the Invest accounts.
I have also written to AJ Bell to find out what they will do.
My thinking is in the worst case, I can sell the BABA stock at a loss and transfer the funds to an ISA provider that supports a HK listing, 9988 is available on AJ Bell but I donāt know if you can trade there. So whilst I realise the loss, I minimise this by in essence buying the same stock at the same price (minus dealing charges and fx)
I also think the market is panicking way too muchā¦
Facts:
Didi was specifically told not to list on NYSE
Ever since listing Didi has had issues with the regulators and CCP
BABA has been listed on NYSE for over 5 years without any issues
BABA is the third largest Chinese company in the world
I honestly think there is a bit of balancing people need to do, yes the delisting is a possibility but lets just put things into context here for a secondā¦
@TheNimbleNomad good info/insight youāve shared on BABA and i have actually seen some of your videos too for other topics.
However the trouble is fund managers are selling off BABA which makes me think thereās something theyāve seen/known that we retail investors are not privy to - so just maybe the market is not panicking too much
Agreed- panic is premature however all the rumours coming out of Beijing is that the Chinese are not going to move heaven and earth to keep US listings*.
I am no expert in US politics but Congress agreed in a rare bipartisan ruling under Trump that the SEC has to enforce full audit requirements. The days of flouting the rules are over one way or the other.
Rui Ma a former Chinese equity analyst and Bloombergās retracted article point to US ADR shake up as borderline inevitable. A full delisting? Maybe, maybe not.