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I don't think CCP would throw away billions of worth just because they dislike the man. Unlike the west, China is allowed to meddle into the affairs of any comp
by arvigeus 5y ago
I don't think CCP would throw away billions of worth just because they dislike the man. Unlike the west, China is allowed to meddle into the affairs of any company, so it's not hard to imagine they are just profiting from him, like a shadow takeover. This explains why he is shown around from time to time: to calm down the investors. At some point this circus would be over, and the companies will collapse by themselves.
- Bombthecat 5y agoSo, you could short the stock and make a killing? In around a year or two?
- ipaddr 5y agoShorting is about market timing. I wouldn't gamble on China not keeping the price high to save face. It could easily go the other way.
- Bombthecat 5y agoThe one in China, i would assume that, but what about the stocks traded outside China? You don't buy tencent stocks in Frankfurt for example..
- native_samples 5y agoThe market cap chart in the article suggests otherwise; since this started hundreds of billions have been wiped off the value of his business empire and its still declining. The trigger was simply a speech where he didn't even criticize the government directly, just the financial infrastructure (which is itself very interesting - why is the CCP so sensitive to criticism of its banks?).
- cheaprentalyeti 5y agoThe CCP makes a trillion dollars a year off of the current status quo, they can afford to throw away billions as long as the trillion keeps coming in.
- lazide 5y agoAnd the iron grip they need to maintain control on the trillions inbound means they regularly need to stomp on the source of a few 10’s of billions here and there. This is just a slightly larger, and significantly more externally visible version of what they do on the regular - and must - to keep control.