Exclusive: China just gave a big F-U to America, hedge fund manager says

Didi, first of all is a Chinese company and is one of the most successful in China, founded by a former employee of Alibaba. Its home market is China, not the USA. So China is f***ing up a company of its own country just to screw with the US?? That is absurd! It would screwing up its own citizens more.

And even if this is all true. WHY are we still investing in Chinese companies??!! There is a whole world of emerging economies out there and all we can think of is just one country? What happened to not putting all eggs in one basket?? Geez!! And what about our own country's economy? Lots of start-up companies with innovative ideas and concepts that could use some investment and support as well? China's companies are way overvalued now. There are lot more companies with lot cheaper stocks in both emerging markets and the US domestic market that are lot more worthwhile if one is into value investing. Buy America!!
 
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maxinger said:
Trump kicked some Chinese companies out of US stock exchanges.

Now China wants to do likewise.

anyway, those who owned Didi (American or Chinese or whoever) should be very sad.
those who shorted Didi (American or Chinese or whoever) should be very happy.
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Didi is 21% owned by the Japanese, 12% owned by Uber and 8% owned by Tencent and with the rest of its company owned by its Chinese parent company. So it just kicked itself off its own exchange. LOL

And China now wants to tighten rules on Chinese companies who sell shares in countries outside of US? Fine, good riddance!!
 
maxinger said:
Trump kicked some Chinese companies out of US stock exchanges.

Now China wants to do likewise.

anyway, those who owned Didi (American or Chinese or whoever) should be very sad.
those who shorted Didi (American or Chinese or whoever) should be very happy.
More...

Does not make sense. The only reason those Chinese companies want to list in US is because of the publicity they gain, nothing about getting US capital. It feels so good for Didi to get mentioned by Bloomberg or CNBC. That is all they want really. Those foreign capital backers dearly want the recognition.

Trump did not kill any Chinese companies.

Since Didi is so new, not sure how you can short its shares.

A lot of BS here.
 
JSOP said:
Didi is 21% owned by the Japanese, 12% owned by Uber and 8% owned by Tencent and with the rest of its company owned by its Chinese parent company. So it just kicked itself off its own exchange. LOL

And China now wants to tighten rules on Chinese companies who sell shares in countries outside of US? Fine, good riddance!!
More...

Not sure what its "own exchange" this is.

China does exactly what it wants. It wants Didi to be a Chinese company, not a US company. It does not want all the data to be accessed by US. It is fairly simple.

The fact that Didi ignored the warning and pushed its way to NY is a big no-no.

This is just the de-coupling. US investors want the access the 2nd largest global economy to participate. It is also very important diversification. But politics clearly gets in the way.
 
After 4 years of relentless attacks from the Trump administration and the yet to be confirmed covid lab leak from Wuhan, one might understand China's defensive posture and wariness towards the West.
They certainly hold much of the blame though, from the transfer to dictatorial powers, exponential growth in military spending and direct threats against Taiwan and the nations surrounding the South China sea, Xi Jinping is walking a dangerous road for a culture always concerned with saving face.
 
Folks need to understand the global financial markets between US and China.

US has the most developed stock markets. There are various market indices on "Global Market" and "Emerging Market", where China stock market clearly dominates. So US investors, from hedge funds to passive investors, want to participate in the world's 2nd largest economy.

China stock markets are much less developed. Also listing in US stock markets carries the prestige and recognition of a truly "global company". So most of the large China companies like to get their shares listed overseas, US the 1st choice, HK the 2nd choice. Those companies enjoy the stock premium.

All this started to change under the watch of Trump. He banned TikTok and WeChat as the threat of "national security". So control of data becomes a huge issue. Clearly this alarms China counterpart.

Didi's largest financial backers are Softbank and Uber. With the history of both companies, we are pretty certain that both companies have been involved with Didi's technology. This is where China's concern is. Didi is the most dominate company that controls most individual data. It is like Amazon, Apple and Google in US. Mark Rubio wants US to get access to Didi's data. This is exactly what China does not want.

At this age of information and communication, it is hard to draw the boundary who owns the data. If a US executive calls or tele conference his team in China, who should control the data? It is not so clear. The same with someone calling his parents in China via Wechat. Most people do not think personal chat or video chat is that huge a deal. But clearly politicians do.

With the competition between US and China, this will become a bigger and bigger problem. Maybe some day, US investors will be totally shut out of China, by both US and China governments. Not sure how good that is to US investors....
 
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RedSun said:
Folks need to understand the global financial markets between US and China.

US has the most developed stock markets. There are various market indices on "Global Market" and "Emerging Market", where China stock market clearly dominates. So US investors, from hedge funds to passive investors want to participate in the world's 2nd largest economy.

China stock markets are much less developed. Also listing in US stock markets carry the prestige and recognition of a truly "global company". So most of the large China companies like to get their shares listed overseas, US the 1st choice, HK the 2nd choice. Those companies enjoy the stock premium.

All this started to change under the watch of Trump. He banned TikTok and WeChat as the threat of "national security". So control of data becomes a huge issue. Clearly this alarms China counterpart.

Didi's largest financial backers are Softbank and Uber. With the history of both companies, we are pretty certain that both companies have been involved with Didi's technology. This is where China's concern is. Didi is the most dominate company that control most individual data. It is like Amazon, Apple and Google in US. Mark Rubio wants US to get access to Didi's data. This is exactly what China does not want.

At this age of information and communication, it is hard to draw the boundary who owns the data. If a US executive call or tele conference his team in China, who should control the data? It is not so clear. The same with someone calling his parents in China via Wechat. Most people do not think personal chat or video chat is that huge a deal. But clearly politicians do.

With the competition between US and China, this will become a bigger and bigger problem. Maybe some day, US investors will be totally shut out of China, by both US and China governments. Not sure how good that is to US investors....
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good points.

How would Trump react to this piece of news?
He was the one who wanted to remove some China stocks from the US exchanges.
 
maxinger said:
good points.

How would Trump react to this piece of news?
He was the one who wanted to remove some China stocks from the US exchanges.
More...

Trump does the dirty work for China government. And he was not paid.

China government would be happy to see Didi going back to HK, instead of NY. Think, what will become if all those China large caps withdraw from NYSE and go to HKSE? It helps HK and hurts NYSE. This is why NYSE withdrew the mandate to de-list China Telecom etc....

All those de-listing will bring more business and jobs to HK or Shanghai, and take away the $$$ and jobs in NYC.... Maybe Mark Rubio should get what he wants. Clearly US investors and business people do not want that to happen.
 
RedSun said:
Trump does the dirty work for China government. And he was not paid.

China government would be happy to see Didi going back to HK, instead of NY. Think, what will become if all those China large caps withdraw from NYSE and go to HKSE? It helps HK and hurts NYSE. This is why NYSE withdrew the mandate to de-list China Telecom etc....

All those de-listing will bring more business and jobs to HK or Shanghai, and take away the $$$ and jobs in NYC.... Maybe Mark Rubio should get what he wants. Clearly US investors and business people do not want that to happen.
More...
Although one may want to consider other reasons than simply greed as motivation to make decisions. It is not in the US markets and investors interest to be swindled by companies bypassing accounting rules, Chinese or wherever. Either you follow the rules or you stay out, regardless of how much we stand to lose.

It reminds me of an article I recently read where Russia is requiring French champagne to switch to the term sparkling wine, while allowing its own sparkling wine to be called champagne.... As far as I'm concerned, Russia can require anything it wants but the pathetic one is LVMH for complying because so much of their business is in Russia. Absolutely pathetic.
 
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