HK environment (political, social, economic, financial) is actually changing, with China taking over HK territory before the date agreements. Even against āvigorousā western protests.
Letās face, HK isnāt the same HK from 5 years ago. What guarantees that in the future, HK stock exchange wonāt have restrictions for foreign investors? So far is opened to foreign capital without limitations, but China is growing his control over HK. If HK stock exchange will have foreign investors limitations, the liquidity and capital transfers could be reduced.
China is also known to have tight capital controls, against big capital flows in/out of China, including for their nationals (crypto prohibitions in China are due also to that, as cryptos allow cross-border transactions and without state control).
In FX front, the HKD isnāt so liquid as USD, although the HKD is pegged to USD. Letās see if HKD monetary policy will stay the same, as China is taking over HK.
I think that is pure conjecture- the Chinese authorities say they are in favour of private companies picking their own listings and foreign investors having access. Just that they donāt want the SEC poking around their turf haha
Aparently Alibaba shares bought on NYSE (BABA) can be converted into Alibabaās Hong Kong shares (9988), where each ADR can be converted into eight Hong Kong-listed shares.
The question is whether T212 would facilitate such conversion in case of delisting from NYSE.
Not trying to promote myself but I made a video for my position on why I think BABA wonāt delistā¦
Just an opinion easier than typing a whole rant out here!
The only thing predictable about China, is that China is unpredictable (at least according to western and democracy thinking).
China have different chessboards to play:
Challenging US as the leader of world economy (including capital controls and prohibition of crypto assets, tight grip on big and systemic companies)
The survival of the communist regime and its CCP (with people, data and information control)
The integrity and expansion of its territory (HK, Taiwan, South China Sea with the construction of artificial islands to expand the territorial waters control and the maritime routes)
I donāt have an opinion about a possible delisting of BABA or any other Chinese stocks. (I wonāt bet in any outcome).
As I donāt invest in authoritarian regimesā companies.
Or in emerging countries with unstable political, social, economic and environmental conditions (and in some developed countries as well in that conditions).
For anyone who has not seen it yet. This should eliminate immediate jitters although it crucially does not give reassurance that China will allow the SEC to verify audits so the 2023 delisting deadline is still in place. Just a lot of fluffy words on that front.
I saw your video and the CSRC statement affirms your take (although we are not out of the woods re auditing).
I hope that it isnāt an expensive lesson for you.
My investment strategy starts as top to bottom, starting with a Macro analysis (economy, monetary policy, politics, social, environment), industry (sector), finishing with a Micro analysis (company, its products and services).
Others do it in an inverse order.
As usual, there isnāt a one fits all solution in financial markets. Every investment strategy could be valid, for each investor.
Not too expensive but enough for the lesson to sink in.
Looking at the historic performance of my portfolio so far, i had the best returns when i stuck with my area of competence although that meant 90% FTSE exposure but it worked well for me even tho a lot of people had better returns from the US market.
The bottom line is that the stock market is big enough to accommodate different strategies of making money, you just simply stick to what works well for you
I see. In that case you havenāt been burnt. That is just my opinion. In fact, I personally believe you will be rewarded handsomely with time. I personally intend to buy more next pay day. Again, just my opinion, but I think this will rather be a lesson on how to make money.
I require some more guidance by trading212 on Alibaba ADR stock Delisting from trading212 platform.
I have read trading212 statement. I need to know if trading212 will support the stock OTC or HK.
Iām sitting on a big lose as Alibaba is selling off.
I need clarification or a timeline as to when trading212 will know what the situation is for them personally. If they can support or not support Chinese stocks OTC.
@desiferrari if you type Alibaba on the search box, there are two threads already addressing the issue of Alibaba.
I would imagine any official response from T212 on the Baba issue will take place on any of those two threads and so you can request for this thread to be closed down.
