China-heavy emerging-market funds carry a lasting governance risk: autocratic leadership has little alignment with foreign shareholders. Chinese shares may offer tactical trades, but a permanent rerating is hard until the CCP is gone. x.com  x.com  x.com 

Webull faces a national-security overhang from its China ties. Per CNBC, citing House congressional panel findings, Webull's China ties are a national security risk, and the stock dropped 10%. The core problem is that Webull controls $25B of customer assets and allegedly routes retail data through a mainland development team. The CEO has sold 200k shares since late August, and other insiders have also been selling. x.com  x.com 

Futu and UP Fintech's Tiger Brokers face what should be unprecedented penalties that strip their onshore gains and clear out illegal existing business in mainland China. Regulators will confiscate all illegal gains of the onshore entities of Tiger, Futu and Longbridge and set a two-year concentrated rectification period to clear out illegal existing business. Neither is one to buy on the news. x.com  x.com 

Futu and UP Fintech's Tiger Brokers face a regulatory threat to their core mainland Chinese business. China's CSRC and seven other government departments launched a crackdown on illegal cross-border securities, futures and fund business, opening investigations and issuing advance penalty notices against Futu, Tiger Brokers and Longbridge. They are accused of providing brokerage, margin financing, fund sales and futures services to mainland investors without approval. x.com 

Chinese stocks are uninvestable for long-term investors because the value created goes to the Communist Party, not shareholders. The Chinese index is down 16% since 1991 while the S&P 500 rose 1,570% and the Nasdaq 3,440%, and Alibaba has gained just 27.8% in 12 years since its IPO. When companies grow too strong, the party hits them with megafines, sidelines founders like Jack Ma or blocks game releases as at Tencent, and foreign investors own only VIE contracts, not shares. x.com  x.com  x.com  … Show more

Futu's valuation logic has changed after China's proposed RMB 1.85 billion penalty, about $270 million or roughly 15% of a year's net profit, plus RMB 1.25 million for founder Li Hua. Per JPMorgan, which cut its target from $300 to $87 and downgraded to neutral, Futu is now a regional licensed broker, not a high-growth fintech, so its growth premium is largely gone. Mainland accounts are just 13% of the total. The May 28 Q1 report on the mainland wind-down and overseas growth is the key test. … Show more

China large caps have one of the worst charts out there, and sooner or later the rest of the world will impose heavy tariffs on China, raising the question of what Beijing does when it gets desperate. x.com 

Alibaba is uninvestable as long as the Chinese Communist Party can touch its profits. That lesson came from owning it before, even as @janusrex argues China and Alibaba will deliver great returns in the coming years. x.com 

Alibaba's offering looks leaked and already priced in, and Friday's options activity points much higher. Big money dumped the stock Friday because of the leak, so at worst it retests its China low before moving up, and the stock is already way too cheap. x.com  x.com 

PDD Holdings carries governance and geopolitical red flags that its low valuation does not offset. Its founder stepped down and left the board at 41, the company fractured a regulator's hand and kept employees from speaking to regulators, growth slowed from 90% in 2023 to about 10%, it buys back no stock, and US investors face unknown treatment in a war. @fintergirl argues it trades below 4x operating earnings with 60% of its market value backed by cash. x.com