BABA - Why We Doubt China Would Be Delisted

The Threat of Delisting China

On Friday, September 27, it was reported that the Trump Administration:

...was considering investment curbs on China, such as delisting Chinese stocks in the United States.

This was considered an escalation of the trade war and sent all major Chinese stocks down dramatically. Alibaba (NYSE: BABA) was down more than 5% on that single day, and major China-related ETFs were down 2-4%:

Data by YCharts

However, we think the market has over-reacted on this threat, which in our opinion is more like a ploy to get more leverage in

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