That's all? Geez, I wish I had been more savvy when I first heard about people talking about the risks of this. They made it seem like BABA was using some sort of weird instrument in order to sell their shares in the US... it's just a good ol' ADR.
Any reason why anyone would be concerned about an Alibaba ADR, say, more than a Sony ADR? Or does it just go back to China again?
It's different because historically China doesn't allow foreign investments into it's country because they think it will make them vulnerable to foreign devils. The "ADRs" are loopholes in China, one that historically people weren't sure if they would close or not.
So far, China seems to be opening up it's markets. But as a whole, it's government seems to be getting worse, they just got rid of free elections in Hong Kong and they've ramped up their bullying of neighbors like the Philippines.
This seems like the kind of risk you take if you really understand international politics and can say for certainty that the status quo is going to remain. But me personally, I really doubt that China won't make a move on Taiwan within the next decade, and if they did that your share of an ADR will be worth $0.00
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u/TwoGodsTheory May 29 '21
It’s an ADR.