facebookWould it be wise to sell my US BABA stocks and buy HK BABA instead to reduce risk of delisting? - Seedly

Anonymous

03 Dec 2021

General Investing

Would it be wise to sell my US BABA stocks and buy HK BABA instead to reduce risk of delisting?

Considering doing this after reading the news about didi having to delist. Thanks!

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Billy

Edited 03 Dec 2021

Development & Acquisitions Manager at Real Estate Private Equity

YJ accurately mentioned CCP had been on high surveillance on Didi due to security concerns. Compliance-wise, BABA so far has been okay. CCP previously mentioned they are clamping down on VIE's not ADR's (https://seekingalpha.com/article/4450880-alibab...)

US BABA - ADR of HK BABA

HK BABA - VIE

So even if you were to sell your US BABA and purchase HK BABA, it does not reduce the risk of any form of delisting / privatisation in both exchanges. Its simply the nature of how BABA is structured when it got listed.

View 1 replies
  • I will just hold on 1st. By selling you realised the losses.
  • Delisting of BABA is 50-50. If it doesnt delist you just loss $$$ for nothing. However, if it delists you loss less money if you sell now. This you have to measure.
  • Didi from the start since ipo had already offended the CCP.
  • So far the ccp had not indicate anything about delisting baba, is all the analyst, articles, youtube spreading the fear.
  • So far all the big tech firm had been very corporative with the ccp, trying to sort out all the issues.
  • The risk is 50-50. But i believe thing will work out. If it going to delist, SEC will make an annoucement to let investors to sell.
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