Adamski wrote:Bouleversee wrote:...there a question mark over Ali Baba, too, for political reasons? The boss seems to have got into hot water with the Chinese govt. My problem is remembering all I read with avid interest now that my brain is permanently fogged.
yes the boss has got in hot water, CEO Jack Ma hasn't been seen since October, but he isn't "missing" just upset the Chinese communist party by criticising them, and told to lay low.
As well as criticising the CCP, there is an issue that Alibaba is too powerful, and the CCP wants to make it down a peg or two. Alibaba set up Alipay, now Ant 33% owned by Baba, which is used for billions of financial transactions on phones in China, making cash obsolete.
The CCP blocked the IPO of the Ant Group, then launched an investigation into Alibaba and ordered the Ant Group revamp its businesses to stop anti competitive behaviour.
I think SMT have a 5% holding on Alibaba, whose share price boomed Mar to Oct, but has dropped back down last 3 months because of this. Arguably it is undervalued, say compared to Amazon, as it dominates eCommerce in China.
Do you have any evidence for the comments on Jack Ma? At 30 September 6.1% of SMT's portfolio was in Alibaba.