redditalpha logoredditalpha
← Back to dashboard
Share
1384%
r/babar/baba· u/ssoh001· 22d agoNews 26

China regulators strike again

Investor summaryBearish

China cracks down on illegal cross-border securities activities, sparking regulatory fears for Chinese ADRs.

Bear points
  • China is cracking down on illegal cross-border securities activities.
  • Regulatory uncertainty continues to weigh on Chinese ADRs.
Post body

https://www.reuters.com/world/asia-pacific/china-crack-down-illegal-cross-border-securities-activities-2026-05-22/

Discussion · top comments15 selected
u/ilikeelks 8· 22d ago

Does not affect BABA their subsidiary ceased all illegal practices 3 years ago

https://www.scmp.com/business/china-business/article/3210076/hong-kong-brokerage-bright-smart-suspends-mainland-chinese-clients-accounts-ahead-new-csrc

u/Qanonjailbait 8· 22d ago

I know it’s weird that they’re regulating their markets instead of a manipulating it through tweets.

u/Fwellimort 6· 22d ago

Ya. Back to the usual. Just crackdowns.

It's what China is famous for. Why you think no one wants to invest in China.

u/ilikeelks 5· 22d ago

Mainlanders can buy HK stocks through northbound and southbound connect. No problems with that and that's NOT GOING TO CHANGE.

Chinese government is promoting HK/CHINA stocks and not US stocks

u/Fast-Sympathy-3828 5· 22d ago

I asked Gemini. TLDR The regulation targets the loophole that allowed mainland Chinese citizens to use offshore brokers (like Futu or Tiger Brokers) to buy US and Hong Kong stocks.

https://preview.redd.it/7ywwy76wco2h1.jpeg?width=1076&format=pjpg&auto=webp&s=e457b3b751d44ab3bd65418ee58c96d99e368b33

u/ilikeelks 4· 22d ago

What the fuck are you babbling about? Mainlanders were NEVER allowed to trade US stocks. FUTU Decided to risk their stockbroker licenses to earn extra profit.

Hong Kong accounts remain unaffected and business as usual

u/adasico 3· 22d ago

Sorry but how it influence baba business ?

u/ilikeelks 7· 22d ago

for the 100th time, IT DOES NOT. Ant Finance subsidiary has ceased this practices 3 years ago

https://www.scmp.com/business/china-business/article/3210076/hong-kong-brokerage-bright-smart-suspends-mainland-chinese-clients-accounts-ahead-new-csrc

u/United_Dimension_487 2· 22d ago

Sentiments. All China ADRs are down considerably.

u/ilikeelks 2· 22d ago

The headlines are confusing the algos!

u/ilikeelks 2· 22d ago

The market is reading this wrong. People are encouraged to buy HK STOCKS AND NOT US STOCKS

u/Thin_Cat8817 2· 22d ago

Not US stocks INCLUDING ADRs, which they are forced to sell if currently holding. Some mainlanders used these platforms to buy BABA and other Chinese stocks listed on US stock exchange

It literally is a crackdown of a loophole - people are being forced to liquidate their holdings and big fines or more are coming. You're being super naive if you dont think this affects BABA. The sentiment around the Chinese govt and companies was already very poor, this only makes it worse

u/ssoh001 2· 22d ago

It triggers ptsd among investors like me

u/ilikeelks 3· 22d ago

This doesn't affect BABA in anyway. The headlines doesn't explain that mainlanders were never allowed to trade stocks to begin with

u/ilikeelks 2· 22d ago

Yes. The issue was Futu took the risk. Ant Finance didn't and ceases these practices 3 years ago

https://www.scmp.com/business/china-business/article/3210076/hong-kong-brokerage-bright-smart-suspends-mainland-chinese-clients-accounts-ahead-new-csrc