Attitude towards BABA compared to NIO

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Ironically it is the opposite. Jack Ma is one of the few influential and rich Chinese who are willing to publicly say something critical about the central government of China. NIO, while being a great company with a lot of growth potential, lives on government subsidy and tax allowance. Consequently, Baba and Ant are regulated and punished by the CCP and therefore their value is lowered due to the risk. NIO is growing well because their development is aligned well with the vision of the Chinese government. Western media may be mostly critical of the Chinese government but the hedge funds are very honest with their money.


I have been seeing lots of speculative news articles by writers who cannot even make the effort to do some basic research on this matter. Personal ideologies aside, China bad or china good is linear thinking that doesn’t help anyone. Both of these companies are expected to show significant growth in the future but NIO’s relatively smaller size and less controversial business model makes it more attractive to some investors. BABA isn’t dependent on Ant’s personal finance business and anti monopoly probes in china historically result in small fines, which makes BABA in trouble argument a very weak one. There are legit reasons to regulate personal finance, which is a rather different matter. Otherwise we end up in predatory financing environment where even a furniture store actively pushes people, who cannot afford their rent, to buy overpriced mattresses and not make any payments for several years. BABA will ultimately recover when the dust settles . There is a reason why hedge funds are buying more rather than offloading BABA.


All you need to know is that NIO trades on hype. People will pump it till the EV mania dies down.


You’re not missing anything. Both companies have the same risk. BABA is being scrutinized and all but both stocks represent holding companies in the Cayman Islands that are entitled to profits of original businesses in China.


Jack Ma of BABA messed around with Beijing by openly criticizing national regulators which led to Xi-driven countermeasures. Nio is a market participant among dozens and less likely to attract additional scrutiny. Also, Nio operates in a market where private competition is actively encouraged by the central gov’t.