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It was very frustrating to see, as a former Alibaba shareholder, Ant Financial get spun off with zero compensation or new share distribution. My primary reason
by partingshots 6y ago
It was very frustrating to see, as a former Alibaba shareholder, Ant Financial get spun off with zero compensation or new share distribution. My primary reason for buying Alibaba in the first place was for Alipay.
It was a good learning experience though to be honest. Since then, I stay away from Chinese stocks on principle. I was lucky enough to be able to sell off my shares without losing anything this time, but who knows what could have happened.
- blahblahblogger 6y agoDoes the US have protections that prohibit companies from doing that? Or is it just that there's more faith in our legal system if a company does what isn't in the shareholders' best interest?
- rokobobo 6y agoI believe that the managers of the company that sells/spins off a subsidiary have a fiduciary duty to get the best price for shareholders in such a transaction. This is even more so the case when a major stakeholder gets to benefit from such a transaction.
- bassman9000 6y agoMany US investors are going to receive a rude awakening a few years from now, if not before. https://www.uscc.gov/research/chinese-companies-listed-major-us-stock-exchanges https://www.uscc.gov/research/chinese-companies-listed-major... https://www.cnbc.com/2020/05/19/nasdaq-to-tighten-listing-rules-restricting-chinese-ipos-sources-say.html https://www.cnbc.com/2020/05/19/nasdaq-to-tighten-listing-ru... And sadly, as usual, fund managers will face zero consequences.