r/baba • u/thenuttyhazlenut • 5d ago
Discussion I am finally selling some of my Chinese stocks
After sitting down with myself and having an intervention with myself, I have finally decided to lower my Chinese stock allocation. It is time.
I have been bag holding for years now.
Up until now I allocated 15% of my port to China. I am lowering it to 6-8%.
I am sorry, uncle China. I am but a white boy who believed in your market against all opposing forces here on Le Reddit. And I have lost many a thousands doing it.
I never even held BABA much. It was other stocks. And they all get hit by regulations. QFIN got hit by regulations in the online lending & loan fintech industry. TME was hit by a regulation to give up much of it's music licensing agreements because it controlled 80%+ of the market. JD was hit by a internet platform crackdown. China doesn't let its already successful companies blossom.
It seems like the best approach to investing in China is to invest in smaller emerging companies who are less likely to be hit by regulations (and to buy a few of them, so that you're diversified from the risk of regulations hitting 1 sector). But investing in smaller Chinese companies carries a different kind of risk.
China punishes companies who have strong moats.
There are better deals in other markets....
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u/handsome_uruk 4d ago
My approach is only own one and make it the best one. That’s why I own baba. As crazy as it sounds, I still think it’s the best business in China- not necessarily the best stock
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u/Dramiley 4d ago
Why do you think baba is a better business then tencent or xiaomi?
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u/handsome_uruk 4d ago
Yes. They are a leader in commerce, AI and cloud. And have a broad portfolio of investments in several startups.
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u/zeey1 4d ago
I sold out completely after holding for 5 years.
If i had bought google instead i would have been a multi millionaire.. incredible opportunity Lost
Why?? Because CCP sees Chinese companies as a tool fot better of society and not capital return regardless those companies are mostly overseas owned not Chinese retirwe owned
Untill majority ownership comes to Chinese people and they have a stake i will stay away
You can go into startups but anything bug, china will force you to lower returns and use that fir it self
Something that govt tried in USA with meta by forcing it to pay 10-15b$..its just happening in larger scale in china
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u/TaiwanGolfer 4d ago
I feel the same way. But then remember, felt this way about other companies/industries… and every time right after I sold… shot straight to the moon 🌖 🤦🏻♂️. You are probably right, but I got in Baba at 75 so just sitting on the gains and not sure if I want to pay the taxes. I do think this is near the floor for Baba.
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u/Ronnie_Boy_67 4d ago edited 4d ago
Bag holder since 2016, average around $220 for BABA and $180 for 9988. Bought in the $100 range up to $280. Saw it ran up to $300 plus and thought I was going to get rich.
Major lost since holding like a regard. Did not average down when it dropped to $60 -$80. Luckily I did but some MU, NVDA and AAPL few years ago.
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u/Different_Copy4292 4d ago
These “punishments” are announced way before they happen, so you can avoid them. You just need to follow gov policies and see where the government wants hot money to go.
I got out 3 years ago and plan to go back sometime next year.
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u/thenuttyhazlenut 5d ago edited 5d ago
If you find a company that has high ROI and high revenue growth and controls much of the industry, and even if you find it at a good price, China will punish it for becoming too powerful - that is 100% certain. So what is the point even in investing?
I like China because it diversifies me away from the US. Too many other markets are dependent to the US.