Once an investment darling, Alibaba (NYSE: BABA) has fallen from grace. The continued crackdown on tech companies in China, the threat of delisting, and the worsening geopolitical relationship between the U.S. and the Chinese government make the stock seem almost uninvestable. Alibaba has been a symbol of excellence and quality.
Japanese investor will not buy back shares in derivative deals, marking historic shift in relationship with Chinese group
Global fund managers holding U.S.-listed Chinese stocks are steadily shifting towards their Hong Kong-traded peers, even as they remain hopeful Beijing and Washington will eventually resolve an audit dispute to keep Chinese firms on American exchanges. The pace of migration will likely accelerate, as more Chinese firms listed in New York are expected to follow technology giant Alibaba's intent to launch so-called primary listings in Hong Kong, potentially boosting liquidity there to smooth the transition. KraneShares CSI China Internet ETF (KWEB), a New York-listed fund focused on Chinese tech plays, started swapping American Deposit Receipts (ADRs) into Hong Kong shares in December, when U.S. securities regulators finalised rules to prohibit trading of Chinese companies not compliant with U.S. audit rules.