Gary Ling, Digital Producer, Data Monetiser, Political Savant, Information Economist, Solution Seller, Business Strategist.
"Life, is a Virtual State of Mind" - Gary Ling
  • Garys Balls
    • Ballsy Start
    • Marketing
    • Economics
    • Project Management
    • Business Strategy
    • eCommerce
    • Business Intelligence
  • Theory of Balls
    • Ling's Theory of Balls Rule 1: "Play Ball"
    • Rule 2: "Have Balls"
    • Rule 3: "Crystal Ball"
    • Rule 4: "Play The Ball"
    • Rule 5: "Talk Balls"
    • Rule 6: "Listen For Balls"
    • Rule 7: "Juggle Balls"
    • Rule 8: "Eye On The Ball"
    • Rule 9: "Score With The Ball"
    • Rule 10: "Have A Ball!"
  • Digital Thinking
    • ...Hi-Tech Cities
    • ...eCommerce
    • ...Bloomberg Reuters
    • ...User Behaviour
    • ...LoveIn My Blacky
    • ...GDS Digital By Default
    • ...InfoWorker BullsEye
    • ...The Cloud
  • DigiShorts
  • Ballsy Thinking
    • ...WikiLeaks
    • ...Stop Iranian Nukes
    • ... on UK Economy
    • ...on the EuroZone
    • ....on Terrorism
    • ...UK Independence Party
    • ...on Crime
    • ...on Social issues
    • ...on China
    • ... on Soviet Union
    • ... on Companies House
    • ... on Drones
  • Ballsy Shorts
  • Chicken Balls
  • Pit Balls
  • Maggie Balls
  • Military Balls
    • British Balls
  • Greenwich Balls
  • China Balls
  • Soviet Balls
  • Scotland Balls
  • Watford Balls
  • Adult Balls
  • Twitter Balls
  • Marketing
  • HOME Tiled

What Are You Buying When Investing in Chinese Social Media IPOs?

9/4/2014

2 Comments

 
Picture
High on caffeine on a trip to Geneva my initial reaction to the Alibaba IPO was euphoria
Sometimes you have to rethink things as new facts emerge. When the Alibaba IPO was announced (I'm a big fan of Jack Ma!) it seemed like a slam duck investment opportunity that should feature in any portfolio. But since Alibaba's IPO document is likely to reveal a structure closely akin to that of Chinese micro-blogging, Twitter-like, giant Weibo (Alibaba owns 18 percent of Weibo), I am now more wary. Quite openly Weibo’s IPO filing shows that investors will not be able to appoint directors to key operating companies in the ownership chain and the regulations governing the money making ends of the company will naturally be set by the Chinese government. This Bloomberg graphic shows the complex layers between IPO investors and the cash generating entities.
Picture
This screen grab from Bloomberg TV shows Weibo's convoluted structure at IPO
Since this is where these companies make their money I missed this obvious point, hence the rethink. It makes Weibo shares riskier and, although Alibaba is a quantatively different operation, it will still have a convoluted structure out of necessity no doubt (like any national government the Chinese clearly have the right to lay down regulations in their own jurisdiction). 

The bottom line is, if you invest in either of these two IPOs, you are taking a punt on 'trusting the numbers and the managers to do the right thing'. There is little by way of comprehensive regulatory oversight. In short it's more about TRUST than VERIFY!  
2 Comments
sell today buy tomorrow tips link
22/4/2014 03:32:14

I really enjoyed reading it, you are a brilliant writer. I actually added your blog to my favorites and will look forward for more updates. Thanks.

Reply
Aurum Financial Services link
2/1/2020 11:09:53

I really enjoyed reading it, you are a brilliant writer.

Reply



Leave a Reply.

    Check the 'Categories List' below to select by topic.
    These Blog comments focus on developments in the Digital space. To discover how the
    ebbs and flows of markets, politics,
    conflicts, countries, people and money
    make the world go round see
    'Ballsy Thinking'.
    Picture

    Digital Ballsy Thinking
    (Pron. "bawl-zee thing-king")

    defined:
    adj: 1. Slang courageous and spirited reasoning; judgement  2. Characterized by clear, straightforward thought or thoughtfulness; 
    rational: “That’s the sort of Ballsy Thinking to move us towards our objective”.

    n.  1. The act or practice of one that thinks differently, innovatively; new thought.  2. Leading by way of reasoning; judgment: “This is not ballsy thinking, it is too timid an idea.”

    Picture

    Archives

    November 2018
    September 2017
    July 2016
    June 2016
    October 2014
    August 2014
    June 2014
    May 2014
    April 2014
    March 2014
    December 2013
    September 2013
    June 2013
    May 2013
    January 2013
    November 2012

    Categories

    All
    Artifical Intelligence
    Big Data
    Blackberry
    Business Information
    Client Case Studies
    Data Centres
    Digital Business
    Ecommerce
    Ethics
    Government
    Human Life
    Innovation
    Revolut
    Social Trading
    Tech City Movements
    The Cloud
    Uk Digital Strategy
    User Behaviour
    Wikileaks
    Windows 10

    RSS Feed

Picture
Current Status: 
Gary welcomes the opportunity to discuss projects that he might be able to work on with you.  
Tel: +44 7508 157 892 Email: ideas@garyling.com

Picture
Photos used under Creative Commons from hans s, mikebaird