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Question asked 12/04/2025

Alibaba (BABA US)

Hi James and team. My first question ever. I would like your take on one of the many threats which are emerging in this escalating trade war between US and China in particular the removal of Chinese listed stocks on the US stock exchange. As investors in the likes of Alibaba and JD.com etc is this something we should particularly worried about and should be taking this threat very seriously? Is it something that the US could implement without much effort and time and if so what would happen to our shares and more importantly the effects it would have on the share price in hong kong

Answer

Hi Terry,

Without wanting to sound flippant anything is possible, including China selling its huge holding of US bonds which would really shake financial markets to their core.

U.S. Treasury Secretary Scott Bessant recently indicated that delisting Chinese companies remains a viable option in the ongoing trade dispute. With 286 Chinese firms currently listed in the U.S, totaling a market capitalization of $US1.1 trillion, the potential impact is substantial.

However, we don’t believe Trump & Co. will go this far, it could back fire big time but if they did go to such extremes you would simply inherit stock in the companies listed in Hong Kong, potentially messy but not scary per se. For example:

Alibaba’s U.S. (BABA US) and Hong Kong (HK 9988) shares are fungible, meaning they can be converted between the two markets, though the process involves a few steps which involve some fees and FX transactions.

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Alibaba (BABA US)

LAST UPDATED 11/04/2025 14:58

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