When the world understood China’s authority treats its celebrities and rich harshly by hinting their wealth belongs to the Communist Party of China investors started restraining themselves to pour more money into Chinese stocks and its economy.
BABA stock is tied to government
One of the big e-commerce stocks Alibaba got hit in 2020 when its founder and CEO Jack Ma disappeared from the public for a quite long time. Also, the case of Binance makes many stock buyers stay distant from Chinese stocks.
However, to keep big stocks of China lucrative the Communist Party is likely to buy their shares continuously. BABA ceased retreating from new lows on March 16. This month it has jumped over $100 and attempts to restore all the lost points of 2020’s value. If new buyers were truly picking its shares BABA would be riding over the $500 mark.
Just look at Amazon or Walmart, they keep hitting new highs slowly organically. Buying China’s stocks is quite risky as they are fully dependent on the decision made by the central government of China while Western stocks have never faced such obstacles.