I do not believe alibaba has any financial trouble. Actually it is one of two major holdings that Jack Ma own. Check out Alipay’s parent company - Any financial which recently valued at 150B usd and it is still unlisted.
I do believe the trade war would have some impact to certain businesses, but as always Chinese gov will intercept and assist.
Every countries are trying tighten up their capital so that they can tax properly. A2M is doing business in China as well, they did clarify that as long as you are not manipulating the structure to avoid tax, there is no reason to hold up your profit. Actually if you visit TMALL, Woolworths and chemist warehouse all have subsidiary in China.
IP is the biggest issue which has trigger the trade war. Chinese gov realised and is pushing to protect IP. It will be a long road to go. JT mentioned that the source code is secured and protected. However nothing is guaranteed. On the other hand, if they steal your IP and come out a better product, we need self-examine why ppl can do it better.
JT mentioned one of the risk is before we fly in china, someone will pay us out from the particular region. JT is trying to differentiate source codes from country to country/ region to region, one to provide a confident to local gov/agency that no one can break through the software, also same as pharmaceutical drug - we can sell the whole right by either to a country or a region.
anyway, country bob is right- we need the first customer to prove the worth!
NET Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
(20min delay)