Hi Investors,
I happen to be invested in a stock called Prosus (listed in Amsterdam) which exists for a large part of a 28% holding in Tencent the large Chinese tech company owning big games and wechat as well as music stream servies.
The quarterly profits of Tencent are immense (double digit billions) and have attracted the attention of the communist party in more than one way. The rest is history and resulted in a large loss of confidence in Chinese companies
In brief one can say that Tencent and Alibaba, DiDi are penalized earlier this year for getting too large and not allowing others to join their lucrative markets; furthermore banking products should not be included in all kind of tech-tools like Wechat and must be reported and regulated seperately.
I can understand the above measures - and the same should be true for the Googles, Microsofts and Twitters of this world - but the other things they say like that the Youth should not game too much and this is caused by the suppliers........hm , that is kind of strange for a country where all adults like to gamble like crazy.
As an investor I can only wait till the storm is over and see if the value of the stock recovers from the 25% hit it took recently. I owe call options that expirate mid 2022 so I have some time but in hindsicght I should have bought some shares instead of options. They have zero intrinsic value and coudl end up worthless.
So the lesson is that owning (indirect) Chinese stock via call options is even riskier than normal calls!!
Not even this guy can help you!
Regards
Goldrooster
