BABA: Inflection Point For BABA Politically and Economically; Expect Valuation Multiple To Restore Gradually
In the past two years, Alibaba was considered a risky asset due to political headwind and economic slowdown. However, at this point, we are convinced that these two risks are diminishing at a faster pace.
Political risks down - Among the two risks, political risk is the dominant one. From a political risk perspective, Alibaba is the first company to be regulated by Chinese regulators. It has been almost 2 years since October 2020. On April 29, 2022 after its economic meeting, the Politburo issued a new statement addressing the new policy direction, including: to stabilize the economy, to ensure the smooth operation of the capital market, to ensure the stability of the property market, to utilize fiscal and monetary policy especially the development of the platform economy, emphasizing the irreplaceable role of platform companies in China's economic development.
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.