As evergrande is about to knowingly and purposefully default on debts owed to overseas debt holders in less than 30 days if they donāt make that coupon payment (while they paid domestic) there will no doubt be a cascading effect of all the other corporate bonds being downgraded in rating.
Beijingās priority is the people who put down deposits on houses, the company and investors be damned.
I would agree on BABA just being down on sentiment for the past year with fundementals being strong, however more recently with its forced donations it is more than that. Forward looking net margins are down due to this, the fundementals have changed in my opinion to be not quite as attractive as they looked even just 4 months ago
But it will rise again.
All point to a well run company where the directors goals are aligned with shareholders.
Markets donāt like unknowns, which can present great opportunities for the bold.
Indeed, shifted out of HSBC today in the 380p+ after its slight uplift from recent lows, I feel as a bank focusing on China and holding Evergrande debt that rightly or wrongly they could suffer, and so risk reward has now changed although longer term bullish so if HSBC gets beaten down to anywhere near 300p I may be a buyer again.
BABA I am holding though, as I dont feel the evergrande can really do too much more damage to it so my position on it hasnt changed.
This is one of my worst performing stock.
āBuy the dip, but the dip keeps dippingā
I never thought that C C P would do like what they are currently doing. Donation, Fine, leading to a lot of people losing their job, but they do not care.
The problem here is that C C P lets the Chinese companies to be listed in the international stock exchange and then later rob them.
The money in BABA is not just from Chinese investors but many of them come from international investors like us. They rob our money in a very unethical way. But does the C C P have ethics ??
Does any large government?
I donāt think thatās a suitable excuse for openly persecuting people with certain beliefs (as an example). Nor do I think you can compare the CCP with other large world powers.
The key word here is āopenlyā for me. Itās not a competition, but I would argue that for every questionable or immoral move the Chinese government makes, you could find one equally as bad in say America, or Russia.
We can agree to disagree on this one I think
We nearly broke rule one of the internet, which is do not enter a political debate with strangers on the internet 
Thatās quite a childish reply to be honest
Thatās quite a judgemental reply to be honest
Youāre going to enter the parameters of rule one gentlemen, be careful 
BABA and other Chinese stocks are like other stocks and securities. They all have political risk and also legal risk, regulatory risk, besides other risks. The āproblemā is that arenāt quantifiable in the financial statements, meaning an incomplete fundamental analysis.
For any reason, despite China is the 2nd largest world economy, China is still considered an emerging market.
Besides the quantitative analysis, we should do a qualitative analysis, incorporating a risk premium for the variables not present in the financial statements. For example, political risk, legal risk, regulatory risk (includes competition issues), ESG risks, etc.
But isnāt only a fundamental analysis problem, also technical analysis could suffer from the randomness of external factors.
I think itās better to be conservative and add a risk premium in each case.
Blimey, even mungers catching the knife
As someone who recently added to my position I feel attacked 
I nearly did again today also, but BABA has punished me everytime Iāve bought the dip 
Picked up another 2 shares. Average price at $185 currently. Iām hoping this isnāt a terrible mistake.
