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I'm guessing that Chinese companies are somewhat similar to statutory companies. I've heard that large Chinese companies have strong CCP oversight, with a part

by fouc 7y ago

I'm guessing that Chinese companies are somewhat similar to statutory companies. I've heard that large Chinese companies have strong CCP oversight, with a party member involved that the CEO/founder has to defer to. So the question is - does it make sense for not-actually-public-companies from other countries to be listed on the U.S. stock exchange? It could be potentially misleading otherwise.

ainiriand 7y ago
Lockheed Martin is in a similar situation.
nraynaud 7y ago
Boeing is listed in more or less the same conditions. Google is listed and they have strong links with political parties. edit: the more direct answer is that the shares that are listed are free and publicly tradable, there exist other shares that are not available on the marketplace, like Facebook. But those shares are owned by state entities.
dragonwriter 7y ago
All it means for a company to be a public company is that it has publicly traded equity. A company that is listed on a stock exchange is, ipso facto, a public company.
thephyber 7y ago
The Alibaba listing in the US isn't even for stock in the Chinese company. It's "stock" in a Cayman Islands holding company that doesn't have any guarantee for stockholders to have any rights in the Chinese parent company.[1] When the US president uses the bully pulpit to insult and threaten American-based multinational companies to suit his political / personal needs at the threat of a DoJ / SEC investigation or FAA license threat, how is that much different than a CCP official doing the same? I would argue it's not nearly as far as my fellow Americans would like to think it is. [1] https://www.marketwatch.com/story/beware-alibaba-ipo-isnt-really-selling-alibaba-2014-05-07 https://www.marketwatch.com/story/beware-alibaba-ipo-isnt-re...
- hos234 7y ago
  True but American don't like being pushed around while the Chinese are used to it. Which means the Bully is usually tolerated for much shorter durations than Chinese Bullies are. Churchill's rise and fall is a good example.
- deleted 7y ago
  [deleted]
- pas 7y ago
  The threat by Trump about let's say a SEC, DoJ, FAA investigation is less credible due to the US still seen as having a sort of functional/independent justice system, rules for these investigations, and clearer appeals processes than in China.

by fouc 7y ago

ainiriand 7y ago

Lockheed Martin is in a similar situation.

nraynaud 7y ago

Boeing is listed in more or less the same conditions. Google is listed and they have strong links with political parties. edit: the more direct answer is that the shares that are listed are free and publicly tradable, there exist other shares that are not available on the marketplace, like Facebook. But those shares are owned by state entities.

dragonwriter 7y ago

All it means for a company to be a public company is that it has publicly traded equity. A company that is listed on a stock exchange is, ipso facto, a public company.

thephyber 7y ago

The Alibaba listing in the US isn't even for stock in the Chinese company. It's "stock" in a Cayman Islands holding company that doesn't have any guarantee for stockholders to have any rights in the Chinese parent company.[1] When the US president uses the bully pulpit to insult and threaten American-based multinational companies to suit his political / personal needs at the threat of a DoJ / SEC investigation or FAA license threat, how is that much different than a CCP official doing the same? I would argue it's not nearly as far as my fellow Americans would like to think it is. [1] https://www.marketwatch.com/story/beware-alibaba-ipo-isnt-really-selling-alibaba-2014-05-07 https://www.marketwatch.com/story/beware-alibaba-ipo-isnt-re...

hos234 7y ago
True but American don't like being pushed around while the Chinese are used to it. Which means the Bully is usually tolerated for much shorter durations than Chinese Bullies are. Churchill's rise and fall is a good example.
deleted 7y ago
[deleted]
pas 7y ago
The threat by Trump about let's say a SEC, DoJ, FAA investigation is less credible due to the US still seen as having a sort of functional/independent justice system, rules for these investigations, and clearer appeals processes than in China.