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Cathie is back in Chinese Tech, but not Alibaba/Tencent. Here is why:
I tend to agree that's the game plan moving forward (buying smaller players in government supported sectors). If I'm the CCP, I will want a more vibrant domestic economy, with many dominant players. Not just one that is dominated by 2 (pseudo) monopolies, that may have too much resource, power, and influence concentrated in too few hands (including significant foreign capital).
More upside potential, and less regulatory risks.
Paradoxically, Alibaba is in many of these "government supported sectors" (Cloud, digitalization, e-commerce, cross-border trade, AI, chip design, logistics etc.); however, right now, perhaps one should be looking at smaller, faster growing, less likely to be scrutinize by CCP, JD and PDD?
(Not directly vested in China; NOT investment advise)
I tend to agree that's the game plan moving forward (buying smaller players in government supported sectors). If I'm the CCP, I will want a more vibrant domestic economy, with many dominant players. Not just one that is dominated by 2 (pseudo) monopolies, that may have too much resource, power, and influence concentrated in too few hands (including significant foreign capital).
More upside potential, and less regulatory risks.
Paradoxically, Alibaba is in many of these "government supported sectors" (Cloud, digitalization, e-commerce, cross-border trade, AI, chip design, logistics etc.); however, right now, perhaps one should be looking at smaller, faster growing, less likely to be scrutinize by CCP, JD and PDD?
(Not directly vested in China; NOT investment advise)
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger