I am confused about the whole Alibaba thing. Why is this thing such a hype? At least here in the US? US investors cannot directly buy Alibaba shares. They cannot own Chinese company equities directly. So what will be offered is shares in a company registered in the Cayman Islands, that has a claim on the assets of Alibaba, still in China. All this is beyond the basic issue of lack of accounting transparency and Jack Ma having a lopsided control over the companys assets. What totally blows me away is that Singapore and Hong Kong exchanges refused to let Jack Ma list his company, citing transparency and control concerns. But here in the US, thanks to this market deregulation, SEC is sitting on the sidelines and doing nothing. The institutional investors are planning in buying these, for the retail clients. So these shares will end up in peoples pension, 401Ks etc and no one is saying anything about this potential disaster.
Posted on: Fri, 16 May 2014 11:20:56 +0000
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