It turns out investors were right about Alibaba: No company is more on the front lines of China's economic shifts than Jack Ma's juggernaut. And that's just where the problems begin.
Alibaba's shares slide with each new report of middle-class Chinese who are dumping apartments to raise cash, delaying weddings, canceling vacations, terminating automobile orders and cutting up credit cards. A social media app called "Guide on Safe Passage Through the Economic Crisis" is all the rage as hundreds of millions of mainlanders encounter their first bear market. All that most Chinese younger than 50 know is annual growth of more than 10 percent. Crashing stocks and recession are Western maladies, not China's.
Ma has hitched the fortunes of his e-commerce behemoth to these people, and the value of his company is falling in sync with them. After surging as much as 75 percent from their initial offering price of $68 each last September, the company's American depositary receipts plunged 16 percent in August, to $66.12, the third consecutive monthly decline in New York. Anyone who doubts that China won't experience a negative wealth effect as Shanghai cracks hasn't looked at Alibaba's numbers. Skeptical investors have shaved $65 billion from its market value since last year's euphoric initial public offering.
You can read the rest @
http://www.bloombergview.com/articles/2015-09-01/alibaba-is-the-canary-in-china-s-coal-mine
Jack Ma made a lot of money from the IPO, and maybe that's all he wanted.
What this mess and the slump of MacDonald's and WalMart show is that there is no recovery - nowhere on this earth. "Our" government and MSM are continually lying to us about this and everything else.
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