„Alibaba, in whatever way you look at it, has clearly been the driver of the private sector in the recent past, so punishing Alibaba will deal hefty blows to the private sector contribution to the Chinese GDP as well. For this reason, we believe the Chinese rulers will, sooner rather than later, let Alibaba resume its growth story unless they want to drive the Chinese economy to where things were a couple of decades ago - which is as unrealistic as it could get.
Second, we believe the ruling party in China has already achieved its objective. When things heated up between Jack Ma and Chinese rulers, for a brief time period, it seemed as if the Chinese ruling party was losing its grip on the economy because of the gigantic size of a few public companies including Alibaba. Over the last 12 months, the CCP has showcased its full repertoire and made sure that both Chinese citizens and businesses understand the important role in the economy the government plays. In all fairness, we don't believe Alibaba investors need any reminder anymore about the massive power the government yields over any private or public company in China, regardless of its size and scale. Now that the CCP has seemingly achieved its objective, we believe the rulers are finally ready to go back into the shadows, for the time being, creating a platform for Alibaba to thrive once again.“
https://seekingalpha.com/article/...institutional-investors-are-doing
|
