Markets were in the red at the close of trading on Monday, while Chinese stocks moved higher despite COVID lockdowns in the country.
Here are three reasons investors should think twice before investing in Alibaba in 2023. United States investors are still at risk when investing in Chinese-based businesses; relations between the two countries are tense, which brings some uncertainty into the equation. For example, the U.S. Securities and Exchange Commission requires access to financial audit records of Chinese companies like Alibaba.
Jack Ma, the Alibaba founder and once the richest business leader in China, has been living in central Tokyo for nearly six months, amid Beijing’s ongoing crackdown on the country’s technology sector and its most powerful businessmen. Ma’s months-long stay in Japan with his family has included stints in hot spring and ski resorts in the countryside outside Tokyo and regular trips to the US and Israel, according to people with direct knowledge of his whereabouts. Ma has largely disappeared from public view since he criticised Chinese regulators two years ago, accusing the state banks of having a “pawnshop mentality” and calling for bold new players that can extend credit to the collateral poor.