China's internet companies are decelerating cloud consumption, says Alibaba
Starts chasing industrial digitization as its next big opportunity
Off-Prem
5 Aug 2022 | 4
Political Xenophobia is destrying the US Exchanges
These regulations are both ex-post facto and rules of attainder. But in the US, that is allowed. Can you imagine this? So essentially politicians can set criteria after companies have already been approved by the SEC for IPOs based on the endless Wild rhetoric of politicians as they weaponize exchanges.
Does this harm China? NO. They can take the IPO money and run. This if Force Majure. Only the US shareholders lose. In the case of Alibaba, BABA has decided to upgrade its Hong Kong Listing which makes the US shares exchangeable for Hong Kong but also will allow Chinese and Chinese exchanges and Asias to buy BABA stock. That will be a huge increase in shareholders in Hong Kong.
I hope Alibaba voluntarily delists and goes big in Hong Kong. This was the largest IPO in US history so it's perfect for the land of XENOPHOBIA to lose this one. Foreign investment in the US has gone nil. AND WITH US SANCTIONS on over 40% of the world population Alibaba's market will only be 6.6 billion people.
These same politicians are the one's trying to UNIONIZE Amazon. Chinese firms will never have unions.
The US market is not that big. IN terms of trade, the USA is only 12% of China's global trade.
But how stupid do Muricans have to be for this? The gov claims that video cameras that are used for home security send data to Beijing. They said Huawei network switches are watching nuclear weapon silos in Montana. They said DJI drones were mapping your neighbourhoods and sending the data to China. Bloomberg claimed that tiny rice chips in SuperMacro server boards were sending apple and Amazon data to Beijing. Not a single one of these bullcrap accusations have been shown to have any factual merit whatsoever. No rice chips were ever produced. Apple and Amazon denied the story but Bloomberg republished it anyway. The Pentagon, after DJI was delisted said officially that DJI drones were not any risk to national security. Xiaomi fought their delisting in a US Court and Won. The judge ruled the charges were without merit.
With all this delisting yack, the products of these companies were never banned, other than Huawei and SMIC and both are doing well in the global markets. Honor the Huawei former phone is available in the US.
The SEC has a lot of these Xenophic rules now. One rule is a company can't be gov owned. Well, Petrobas is Gov owned. So when are they getting DELISTED? I guess enforcement is just aimed at Asians specifically in China.
So according to the SEC Alibaba has some allotted time to meet the new accounting regulations to reset the year. It would take three years to delist BUT BUT BUT... the discretion would be given to the US Treasury Dept. So now you have a whole cross-linking of US GOV agencies, making the political rules and judgments over private enterprises. That's politics and China should not care. The only reason politicians do this is to antagonize and create opportunities for insider trading and selling of calls and buying of puts. It is just a game played by the crumbling old empires such as the US, UK and France.
China should complain but not too much. Instead, they should IPO a lot more Chinese firms knowing those firms can take the IPO money and run.
For me to explain contract law to a lay person is difficult at best. But in simple terms, if you have a contract to pave your drive by a cement flatwork, then the terms can not be altered later if they are material to the contract. The flatworker cannot raise the price and you cannot force them to do additional work other than that specified. Attempting to alter the terms of a contract without the assent of all parties is breach. But if the Government does this, then it is force majure. Chinese firms can take the money and run. Alibaba was the largest IPO in US history. NO large global firm will ever IPO in the USA again. US capital markets have been destroyed by this insanity. Aramco did not file an IPO in the US for fear of the history of seeing other Muslim entities having assets frozen without due process but simply arbitrary and capricious politicians.
So those of you that think this is fantastic should look to IRS's relatively new rules. In tax law the code the year of your taxes rules the law. But IRS regulations changed and if you previously owed tax to IRS, the new regulation the prevents you from leaving the country now applies to your old return when the regulation did not exist.
If this was a law it would be UNCONSTITUTIONAL but it is a regulation made by the Agency and that is perfectly legal says the courts.
I repeat China is not going away ever. They are storming ahead in many areas and this endless US antagonism, the Nancy Kerrigan Kneecapping annoying foreign policy, is isolating the US from all of Asia. In a race war, Asians will stick together. All of the US sanctions, tariffs, and weaponizing of the US dollar reserve are destroying your economy. The more protectionism you add the more the world stops dealing with you.
