Alibaba tells Trump we 'support American brands' BBC•August 21, 2020 Alibaba's logo at the company's headquarters in Hangzhou, Zhejiang province. Alibaba has moved to ease tensions with Donald Trump, as the US president continues to threaten Chinese firms. Chief executive Daniel Zhang said the online retailer's policies "support American brands, retailers, small businesses and farmers". The comments came as the tech giant announced a better-than-expected jump in quarterly sales. Meanwhile Mr Trump has promised to impose tariffs on US firms that refuse to move jobs back from overseas. Earlier this month US Secretary of State Mike Pompeo called on American technology firms to cut ties with Chinese companies, including cloud-computing providers Alibaba, Tencent and Baidu as part of the Trump administration's so-called "Clean Network" programme. It came as Mr Trump signed two executive orders targeting Chinese-owned video-sharing app TikTok and messaging platform WeChat. "Alibaba's primary commercial focus in the US is to support American brands, retailers, small businesses and farmers to sell to consumers and trade partners in China as well as other key markets around the world," Mr Zhang told investors. "We are closely monitoring the latest shift in US government policies towards Chinese companies which is a very fluid situation. We are assessing the situation and any potential impact carefully and thoroughly, and will take necessary actions to comply with any new regulations," he added. https://finance.yahoo.com/news/chinas-alibaba-offers-olive-branch-032125056.html
Alibaba Investors Swap U.S. Shares for Hong Kong Amid Crackdown (Bloomberg) -- Several of Alibaba Group Holding Ltd.’s biggest investors have converted billions of dollars in U.S. shares for Hong Kong stock in part to avoid potential U.S. sanctions and de-listings of major Chinese technology companies. Temasek Group Holdings Pte., Baillie Gifford & Co., and Matthews Asia are among the major shareholders that have swapped stakes in the Chinese e-commerce giant to take advantage of new rules easing the switch following Alibaba’s listing in Hong Kong last year. Geopolitics is contributing to the shift, according to people familiar with the moves. “Lots of long-term fund managers, especially the ones whose fund managers are based in Asia, are switching or considering switching from ADRs into Hong Kong-listed shares,” said Nelson Yan, head of offshore capital markets investment at Creditease Wealth Management (Hong Kong) Ltd., referring to American Depositary Receipts. “Demand for these ADRs in the U.S. is now clouded by the politics.” The Alibaba stock shifts are a sign that the Trump administration’s fierce rhetoric against Chinese tech firms is prompting investors to take steps to avoid the potential fallout. At the same time, as Chinese companies seek more dual listings in Hong Kong, the moves threaten to drain liquidity of the New York shares. Baillie Move Baillie Gifford, whose partner and portfolio manager James Anderson told Bloomberg Television in March that Alibaba could become a $2 trillion company, swapped 10.4 million U.S.-listed shares worth about $2.67 billion in the second quarter. That’s about a fifth of its stake, and is the biggest change since it first bought shares in 2014. The money manager, among Alibaba’s largest shareholders, converted the stock to the Hong Kong-listed shares, according to a person familiar with the move. A spokesperson for the Edinburgh-based firm declined to comment. A spokesman for Singapore’s state-owned investor Temasek confirmed that it swapped half of its stake representing 12.1 million shares -- worth about $3 billion -- from the U.S. to Hong Kong, declining to comment further. The issue has been top of mind for many institutional investors since May when the Senate overwhelmingly approved S.945 -- a bill that could lead to Chinese companies being barred from listing on U.S. exchanges. Conditions include being able to certify that they aren’t under the control of foreign governments and allowing the Public Company Accounting Oversight Board to audit the business. Matthews Asia, which manages about $23.4 billion, divested almost three quarters of its U.S. Alibaba shares in the second quarter, worth about $700 million. Much of that is now held in H-shares in Hong Kong and in its Pacific Tiger Fund, whose lead manager is Sharat Shroff. “Venue doesn’t really matter a whole lot – it’s about getting access to liquidity and it’s about getting access to the right pricing mechanism so we continue to have a position in Alibaba both through the Hong Kong listing as well as the listing in the U.S.,” Shroff told clients in a July webcast. Keywise Capital Management, which oversees $1.5 billion for global investors including sovereign wealth funds and endowments, plans to invest in the Hong Kong shares of dual- listed Chinese companies, said founder and Chief Investment Officer Zheng Fang. The increased U.S. scrutiny of Chinese ADRs has led to investor concerns about the potential risks of holding these securities, he said. Stock Connect The Hong Kong shares may also get a boost from MSCI’s plan to reduce the Chinese ADR weightings in its indexes, while raising Hong Kong stocks, he said. Once listed in Hong Kong, those companies may be included in the stock connect scheme with China, allowing them to attract support from mainland Chinese investors, he added. Myriad Asset Management, the hedge fund firm led by Carl Huttenlocher, also swapped most of its Alibaba ADRs for Hong Kong shares, said a person with knowledge of the matter. With more of Alibaba’s peers listed in Hong Kong, it’ll become easier to compare valuations and do hedged trades, the person said. The stock moves are already boosting Aliababa’s trading in Hong Kong. On a 50-day moving average basis, Hong Kong’s daily turnover now accounts for about 17% of the company’s total trading, up from a low of 13% in early June. Investors in the Hong Kong shares have been rewarded, with the stock gaining 45% since the November listing, compared with a 35% jump in the U.S. stock over the same period in local currency terms. The Hong Kong shares may attract even more institutional investors when Alibaba joins the Hang Seng Index on Sept. 7 “The majority of its shares are still in the U.S., but the relocation is already happening and that’s driven by long-term holders,” said Kenny Wen, Hong Kong-based strategist at Everbright Sun Hung Kai Co. “In the very long run, we can’t exclude the possibility for Hong Kong to become the primary listing place for Alibaba.” https://finance.yahoo.com/news/alibaba-investors-swap-u-shares-094103630.html
BABA nearing the 200 sma ~$240. Also halfback of the March low - October high is ~$245, and that is also the August low. Right now BABA is ~$255.
I'm not reading too much into the reaction to the fine. Instead I'm seeing it in a range $220-$270, and it bounced off the bottom of it. Right now it's about the middle of it, so not buying it until it breaks above $270.
Pulled back all the way, almost under $210. Near this ultimate line for the uptrend. Looking like a good time to buy.
AH! thanks for bumping this, I keep forgetting to check it out! I agree! I think BABA is well valued here!
Gapped down today, but still above the ultimate trend line support, and now sitting on the 200-week ema. See tomorrow if it trades above today's high of 202.28
I am glad I sold a few days ago.... at least short-term Long term Alibaba will be fine. In fact, I wish I had money to get back into the game because once they finish this daily tank will be a good time to buy hard on Alibaba because they will be a 300$ EOY stock.
Made a few bucks off the bounce. In at 180$, back out at 195$. That was about as automatic as Ive seen them. I wish I would have had more money to play on that move.
Glad I sold. BABA getting crushed. Down under 160$ and trending down. This provides a GREAT buying opportunity once it bottoms out.
BABA: The Big Daddy “BABA” literally means “Daddy” in Mandarin. This Daddy has been plunging like crazy for over a month now which has led to investors’ faith loss. Is it still the Daddy we know or should we find another Daddy? Join the therapy now. ---Promise or Non-sense?--- Chinese government crackdown All the Chinese stocks are dropping faster than my stoner niece’s grade. From technology and education industries to online services, food delivery apps and music streaming platforms. No survivors. - When will the bully stop? CCP ACTUALLY gave an official statement promising more crackdowns on tech and health care. So…. Take this into account before buying Chinese stocks. If timed right, it’s easy money to short as other bad news comes out. The news you SHOULD be worried about is the kind of news that could impact their business’s fundamentals directly. - Buying a dip or walking into a bag trap? First of all, I don’t trust the Chinese government AT ALL and messing up with the Chinese government will never be an option. BABA is a decent company with great profit and revenue, but It’s dropping crazy due to investors’ fear and non-fundamental related issues. No one can predict when the dump will stop, which is why I recommend buying BABA with a small position every once in a while. If you’re looking to swing trading it, this may not be your place - way too risky now.
Downside objective met with a selling climax on Moonday. Short covering ensued on Tuesday. A new trading range (TR) should develop. Waiting to see if the CM will accumulate from, or re-distribute stock to the public as the TR develops.
