Redditors have the most uninformed knee jerk reaction to Alibaba. They state with certainty that China is uninvestable and the CCP can steal your investment at any time. Most offensive, people claim BABA fakes it’s numbers!
The largest company in China is not a fraud. It’s impossible for a company of BABA’s size to be faking numbers. This idea of cheating lying Chinese is a racist idea from the west. It’s blatant disrespect tantamount to accusing Apple or Microsoft of forging its numbers.
The Chinese are honest, hard working people. To think that the government would use the VIE structure to steal foreign investors money is a borderline conspiracy.
For the uninformed, VIE is the structure in which BABA is able to be listed in the U.S. One doesn’t own shares in BABA, rather they own shares in a holding company that owns BABA Shares. Based on a legal technicality, VIE is illegal under Chinese law. Many racists claim that the CCP will choose to enforce their laws and dismantle the VIE system.
They are effectively saying the CCP will steal your money invested in BABA. This is again based on the racist stereotype that Chinese lie, cheat and steal. Redditors perpetuate this racism via these thinly vailed racist conspiracy theories.
BABA certainly has risks, but to stretch the risks to an extreme case and justify it with thinly vailed racism is unacceptable.
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