🚨 Unpopular truth about Chinese ADRs:
You've never actually owned the stock.
Almost every Chinese ADR (BABA, JD, PDD...) uses a VIE — a shell company with a contract to the real business, not equity in it. It's fully legal in China's gray zone, but if Beijing ever decided to enforce foreign ownership laws strictly, that contract could become worthless overnight.
Add HFCAA delisting risk + policy crackdowns that erased ed-tech and gaming overnight in 2021 — and you start to see why "cheap valuation" isn't the same as "safe."
This isn't fear-mongering. It's structure. Know what you actually hold before you hold it.
Agree or disagree? 👇
#SouthKoreaLawmakerToDelayCryptoTaxTo2030
You've never actually owned the stock.
Almost every Chinese ADR (BABA, JD, PDD...) uses a VIE — a shell company with a contract to the real business, not equity in it. It's fully legal in China's gray zone, but if Beijing ever decided to enforce foreign ownership laws strictly, that contract could become worthless overnight.
Add HFCAA delisting risk + policy crackdowns that erased ed-tech and gaming overnight in 2021 — and you start to see why "cheap valuation" isn't the same as "safe."
This isn't fear-mongering. It's structure. Know what you actually hold before you hold it.
Agree or disagree? 👇
#SouthKoreaLawmakerToDelayCryptoTaxTo2030