Alibaba Trading forecasts and signals

U.S. regulators have selected major e-commerce companies Alibaba Group Holding Ltd and JD.com Inc among other Chinese companies registered in the United States for audits to begin next month, Reuters reported, citing sources.The selection follows an audit deal between Beijing and Washington that allows U.S. regulators to audit accounting firms in mainland China and Hong Kong, potentially ending a long-running dispute that has threatened to remove more than 200 Chinese companies from U.S. stock exchanges.The two technology companies, along with Yum China Holdings Inc -- owner of KFC, Taco Bell and Pizza Hut restaurants in China -- have been notified that they are among the first group of Chinese issuers to be audited in Hong Kong by the U.S. audit watchdog.U.S. regulators have been demanding access to the audit records of Chinese companies registered in the United States for more than a decade, but Chinese authorities have been reluctant to allow U.S. regulators to inspect accounting firms in China, citing national security concerns.Alibaba, which went public in New York in 2014, the largest listing in history at the time, is the most expensive Chinese company listed in the United States, with a market capitalization of $248 billion.In July 2022, Alibaba was added by the U.S. Securities and Exchange Commission (SEC) to the list of Chinese companies that can be delisted if they fail to meet audit requirements.More than 160 Chinese companies are now on the list, including JD.com, Yum China and electric car maker Nio Inc.Current U.S. rules stipulate that Chinese companies that fail to comply with audit working papers will be suspended from trading in the U.S. in early 2024.Alibaba shares were down 2.86% to $93.84 a share in trading on Aug. 30, and were up 1.82% momentarily to $95.55 in premarket trading on Aug. ...

Chinese IT corporation Alibaba Group Holding Ltd will seek to maintain its listing on the New York Stock Exchange along with its listing in Hong Kong after the company was delisted by the US authorities.Amid the news about the exclusion of Alibaba shares from the NYSE, the company's securities on Friday, July 29, fell by 11.1% to $89.37 per paper. On August 1, the Hong Kong Stock Exchange also declined by 4.5%.In total, 270 Chinese companies were included in the list of the US Securities and Exchange Commission for delisting. The main reason is non–compliance with audit requirements.The Holding Foreign Companies Accountable Act (HFCAA) is designed to resolve a long-standing dispute over compliance with the auditing requirements of Chinese companies registered in the United States. It is aimed at excluding foreign companies from American exchanges if they do not comply with American auditing standards for three consecutive years. Alibaba said that inclusion in the list means that it is now considered a company that has entered the first unverified year.Alibaba's management has already stated that it will continue to monitor developments in the market, comply with applicable laws and regulations and strive to maintain its listing status on both the New York Stock Exchange and the Hong Kong Stock Exchange.U.S. regulators require full access to working documents on the audit of Chinese companies listed on the New York Stock Exchange, which are stored in China. Beijing prohibits foreigners from checking the working documents of local accounting companies.According to US rules, Chinese companies must meet audit requirements by early 2024, although Congress is considering bilateral legislation that could speed up this deadline to ...

Alibaba, China's largest online retailer, plans to add an initial listing in Hong Kong to its presence on the New York Stock Exchange, targeting investors in mainland China. The Board of Directors has already authorized the company's management to submit an appropriate application.The company has already been listed on the Hong Kong Stock Exchange with a secondary listing since 2019 and expects the completion of the primary listing by the end of 2022. CEO Daniel Zhang said the dual listing will help expand and diversify the investor base. Thus Alibaba will become a company with a dual primary listing - on the New York Stock Exchange in the form of American depositary receipts and on the Hong Kong Stock Exchange in the form of ordinary shares.Alibaba made this decision after the Hong Kong Stock Exchange changed its rules in January to allow innovative Chinese companies operating in the field of Internet and high technology to conduct a double primary listing.However, companies with a primary rather than a secondary listing in Hong Kong are subject to stricter requirements. In particular, issuers are required to disclose financial guarantees provided to affiliates and other important indicators.This decision to list in Hong Kong, in our opinion, is not only due to the fact that the company wants to expand the geography of trading its shares. The main reason is most likely due to the fact that in the United States, where Alibaba Group securities are currently traded, Chinese companies are undesirable, a number of issuers from China were actually forced by the American stock market regulator to leave the US exchanges. Accordingly, Alibaba Group is preparing an additional platform for the circulation of its shares in the event of force majeure in the United States in order to provide its investors and shareholders with a liquid stock market comparable in trading turnover with the New York Stock Exchange. Today, on the premarket in the United States, the stock quotes of the Chinese corporation are growing by 4.74% on this news.Alibaba initially held an IPO in September 2014 on the New York Stock Exchange, which at that time was the largest public offering in history. However, since 2020, the company's share price has started to fall due to regulatory decisions and inspections of Chinese companies by the American ...

Shares of China's largest online retailer Alibaba fell by almost 5% on July 14 after the Wall Street Journal reported that the company's cloud division executives were summoned by the Shanghai authorities in connection with the theft of a police database.Earlier this month, an anonymous hacker claimed to have obtained the personal information of more than 1 billion Chinese residents from the archive of confidential data of the Shanghai police. The investigation concluded that the database was hosted on Alibaba's cloud platform. After the theft was discovered, the company temporarily closed access to the data and began checking. However, the reasons for the hacking have not yet been established. The WSJ noted that there was no up-to-date security certificate in the database, which is used to encrypt web traffic.It is assumed that the stolen data contains the names, government identification numbers and phone numbers of most Chinese citizens, including minors.This story was reported only by the American business newspaper The Wall Street Journal, and the authorities and the Shanghai police have not yet commented on this topic, but a version about a planned attack on Alibaba by competitors is not excluded.The alleged breach comes amid a tightening of Chinese regulators' data privacy policies and increased oversight of the country's tech giants. At the end of last year, China adopted the Law on the Protection of Personal Information, an important document defining appropriate methods for storing and collecting ...

The session on July 11, the main American stock exchanges ended in the red zone. The S&P 500 fell by 1.15% to 3,854 points, the Dow Jones adjusted by 0.52%, the Nasdaq fell by 2.26%. Ten of the 11 sectors included in the broad market index closed in the red. Only representatives of public utilities remained in the green zone (+0.64%).Company newsInnova (INVA: -0.1%) will acquire La Jolla Pharmaceutical (LJPC: +81.1%) at a price of $6.23 per share in cash.Alibaba Group (BABA: -9.4%) was fined by the Chinese government for non-compliance with antitrust rules and non-disclosure of information about several transactions. The same penalty was applied to Tencent Holdings (700: -1.29%) and some other companies.Uber Technologies (UBER: -5.2%) after publication in The Guardian stated that it recognizes the mistakes made and is working on changes. We are talking about aggressive lobbying actions under CEO Travis Kalanick, including a secret deal with Emmanuel Macron. In addition, the company agreed that it had no right to work in many jurisdictions where it provided services, and also admitted concealing evidence from the authorities and ignoring the risks of violence for drivers.We expectToday, investors' attention is focused on several factors that could lead to a significant slowdown in the global economy.The epidemic situation in China worsened after the first case of the contagious COVID-19 BA variety was detected in Shanghai.5. In Macau, all casinos were closed for a week. In the event of a negative development of events, the pressure in the logistics chains may continue to increase. Investors are also concerned about the state of affairs in Europe: EU leaders suggest that Russia may not resume gas supplies after a two-week shutdown of the Nord Stream for maintenance. According to Goldman Sachs estimates, in this case, the bills of European households for electricity could increase by 65%.This week, bidders expect the publication of consumer inflation data in the United States for June. The consensus forecast calls for an increase from 8.6% to 8.8%. If the CPI breaks through the 9% mark, it may provoke further sales in stocks. Against this background, discussions continue to circulate in the media about the risk of a mistake by the Fed in the fight against rising prices. Also, in the latest notes of investment banks, doubts began to appear about the sustainability of job growth and consumer activity.Trading on July 12 on the sites of Southeast Asia ended in the red zone. China's CSI 300 lost 0.94%, Hong Kong's Hang Seng fell 1.12%, Japan's Nikkei 225 adjusted 2.63%.Brent crude futures are quoted at $104.8 per barrel. Gold is trading at $1,732.7 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3820-3880 points.MacrostatisticsNo significant macro statistics are scheduled to be published today.Sentiment IndexThe sentiment index dropped by one point to 28.Technical pictureThe closest support for the S&P 500 remains the range of 3600-3660 points. The RSI indicator is in the neutral zone, and the MACD signals the continuation of an uncertain positive trend. Quotes are approaching the upper limit of a narrow descending channel, which, due to the lack of positive news drivers, may lead to a continuation of the "bearish" trend.ReportsToday PepsiCo will publish its second quarter reports. Analysts' consensus puts the company's revenue for the second quarter at $19.5 billion with earnings per share of $1.74, which means growth of 1.4% and 1.16% YoY, ...

The shares of the Chinese Internet company Alibaba rose by 6.62%, to $112.11 per paper, and continue to grow on the premarket on June 24. A sharp jump occurred after the speech of Chinese President Xi Jinping, where he said that China plans to achieve the previously announced economic goals for 2022, which provide for the country's GDP growth of 5.5%, despite restrictions due to the spread of COVID-19.Achieving the goal of China's GDP growth of 5.5% by the end of 2022 is absolutely realistic, since it grew by 4.8% in the first quarter of this year alone. Currently, all restrictions related to Covid-19 are beginning to be lifted in the country, which means that in the future economic growth may accelerate and exceed the plans of the ...

The international rating agency Fitch has confirmed the long-term issuer default rating in foreign and national currencies of the Chinese Internet company Alibaba at the level of "A+". Fitch forecasts a slowdown in revenue recovery due to increased competition, macroeconomic uncertainty and lower consumer demand, but cost optimization will help the company offset any negative impact on its rating.Alibaba's rating is the highest among Chinese Internet companies and, judging by the statements of Fitch Ratings, it will be so in the coming year. This means that Alibaba will remain the leader in the e-commerce segment and together with the recovery of revenue volumes, we should expect an increase in the value of their shares.Alibaba shares on the NYSE on May 7 rose by 5.36% to $104.32 per ...

The market the day beforeThe session on May 26, the main American stock exchanges ended in the green zone. The S&P 500 rose 1.99% to close at 4,058 points. The Nasdaq and Dow Jones indexes gained 2.68% and 1.61%, respectively. 10 of the 11 sectors in the S&P 500 closed in positive territory. Cyclical consumer goods manufacturers (+4.78%) and technology companies (+2.45%) looked better than the rest.Company newsDollar Tree's profit, revenue and margin (DLTR: +21.9%) for the first quarter exceeded consensus expectations, and forecast EPS and revenue for the full fiscal year were increased.Alibaba Group (BABA: +14.8%) reported the slowest quarterly revenue growth since anti-bullying restrictions in China came into effect. Revenue and EBITDA for the fourth fiscal quarter were able to exceed analysts' expectations, but the issuer refused to provide guidance for the full year.Elon Musk allocated an additional $6.25 billion to finance the acquisition of Twitter (TWTR: +6.4%), as a result of which the businessman's total liabilities reached $33.5 billion. It was also announced the expiration of margin loans secured by Tesla shares.We expectDuring the outgoing five-day period, a number of important macro indicators were published. The Bureau of Economic Analysis presented revised GDP growth data, which turned out to be worse than the predicted values. The primary data released two weeks earlier indicated a 1.4% drop in GDP in the first quarter. The downward revision mainly reflects a reduction in private investment in housing and inventory. The latter is largely caused by the compression of wholesale trade (mainly motor transport), as well as the deterioration of indicators in the mining industry, utilities and construction. However, this negative effect is partially offset by an increase in consumer spending. Despite indirect evidence of a decline in the attractiveness of the dollar against the background of released macro data, the DXY index showed positive dynamicsThe yields of two- and 10-year treasuries were 2.48% and 2.75%, respectively. The indicator for 30-year securities increased by 3 bps, to 2.99%.Trading on May 26 at the sites of Southeast Asia ended in the green zone. China's CSI 300 gained 0.21%, Hong Kong's Hang Seng rose 2.72%, and Japan's Nikkei 225 remained unchanged. EuroStoxx 50 has been growing by 0.30% since the opening of the session.Brent crude futures are quoted at $117 per barrel. Gold is trading at $1,847 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4000-4100 points.MacrostatisticsThe dynamics of GDP for the first quarter was revised from -1.4% to -1.5% with a forecast of -1.3%. The number of initial applications for unemployment benefits was 210 thousand (consensus: 215 thousand; previous value: 218 thousand). The index of pending sales in the real estate market in April reached 99.3 (forecast: 101.7; previous value: 103.7).The price index of personal consumption expenditures for April is expected to be published today (forecast: 4.9%; previous value: 5.2%).Sentiment IndexThe sentiment index rose one point to 35.Technical pictureThe S&P 500 broke through the psychologically important 4,000 point mark and exited the descending channel that formed in early April. This is evidenced by the benchmark crossing the 20-day moving average. Now it is important for the index to rise above the 50-day moving average, located at 4,200 points. The MACD indicator also indicates a reversal of the "bearish" ...

The shares of the long-suffering Chinese company Alibaba (BABA) have already reached $112, falling by 64% from historical highs.What is happening and is there any hope for recovery?Over the past year, Alibaba has been hit by a lot of problems.Ant Group IPO FailureLast November, Alibaba founder Jack Ma was called to the carpet by Chinese financial regulators.  Before that, the businessman criticized Chinese state-owned banks and contrasted them with innovative fintech companies, which include Alibaba's "daughter" Ant Group. In addition, Ma expressed disagreement with the rules governing the fintech industry in China. For this, he paid for the disruption of the Ant Group IPO, which was previously estimated at $37 billion.Antimonopoly investigation and finesPaying attention to Alibaba, Chinese state regulators launched an antitrust investigation, which eventually led to a fine of 18.2 billion yuan (about 13% of the company's net profit for the whole of 2020).The risk of delisting on US exchanges and selling by US fundsAmerican regulators have also added fuel to the fire, who have long wanted to force Chinese companies to be more open and report according to international standards. Companies that do not meet the requirements may lose their listing on international exchanges and become inaccessible to external investors.Chinese stocks also experienced pressure from American funds when they rushed to sell them, seeing high political and regulatory risks. For example, the George Soros Fund sold off most of the Chinese securities, and the investor himself called investments in China a tragic mistake.The threat of delisting on foreign sites comes for Chinese companies not only from the United States, but also from China itself. So, Didi announced delisting on American exchanges at the initiative of the Chinese regulator.Regulators are extremely concerned that foreign participation in capital may pose risks to national security. So it's better to deny major domestic players foreign financing and access to Western corporate practices than to create such risks.By the way, the existence of VIE offshore structures, whose shares are bought by foreign investors, is caused precisely by China's concern about security issues, and local authorities can go much further along this path.What is Alibaba's financial results?The company's revenue in the 3rd quarter continued to grow at a high pace, increasing by 29% year-on-year. The online trading segment, which accounts for 85% of total revenue, increased sales by 31%. and the cloud segment - by 33%. Against the background of declining stock prices, the company's P/S multiplier reached the lowest values in recent years - 2.3.But Alibaba's profitability indicators are far from good. The company showed a drop in EBITDA and net profit by 32% and 87%, respectively, and, as a result, the profitability of its business decreased.Revenue growthTotal revenue: +29%Online trading: +31%Cloud services: +33%Reduced profitabilityEBITDA: -32%Net profit: -87%EBITDA marginality: 27% -> 14%Operating margin: 9% -> 7%The company attributes the decline in EBITDA to growing strategic investments in online trading services such as Taobao, Lazada and some others. It turns out that the company invests mainly in Chinese and Asian services, trying to reduce international risks.The decrease in net profit is due to the "paper" revaluation of Alibaba's shares in other public companies, as well as an increase in the tax burden.Thus, the company's profit in the last reporting quarter was under serious pressure, which was another negative factor that affected the dynamics of its quotes.From the latest news of the company, it is worth highlighting two main events.New Financial DirectorAlibaba recently announced the appointment of a new CFO. He became Toby Xu, who will take up his duties from April 2022.Xu has been working at Alibaba since 2018, and has been deputy CFO since June 2019. Prior to that, he had been working at PwC audit company since 1996. It turns out that the new financial director is an experienced person and not new to the company.Reorganization in the e-commerce businessThe company stated that two divisions will be formed within its core business (online sales of goods). One will be responsible for international sales, and the other will be responsible for sales in the domestic Chinese market. Due to this, the company plans to accelerate the growth rate and become more efficient.Analysts' opinionAlibaba shares have been under pressure from regulators for more than a year and the situation does not seem to be improving yet. In recent weeks, rather weak financial statements have also been imposed on external pressure. High business growth rates are costing Alibaba more and more, and the external situation around the company and the Chinese market as a whole is reflected in a decrease in net profit and an increase in taxes. It is very difficult for a foreign investor who is poorly versed in the internal political realities of China to assess the true scale of risks.It should be understood that the shareholder value of Chinese companies is not a priority for the country's authorities right now. They are much more concerned about national security issues, for which they may well sacrifice the interests of companies such as Alibaba, depriving them of both access to foreign capital and privileges in the domestic market.The authorities believe that the period of expansion has led to the emergence of a business model that creates risks for the entire economy. For example, before last year's reform, Ant allowed creating and accumulating bad debts, Ali and Tencent created closed ecosystems and bypassed or ignored antitrust regulation. All this is corrected by regulators. If the exchange value of shares is destroyed at the same time, this is a side effect of the necessary measures, from Beijing's point of view."Investing in China now involves very high risks. In our opinion, it is worth allocating only a small share of the portfolio to Chinese stocks, or investing in them through ETFs. The recovery of the Chinese market, which many are waiting for, may take a long time or not happen at ...

Today, money is brought only by what loudly enters the market, but only taking into account if this product is needed by humanity. This is what happened with electric cars, coronavirus vaccines, and artificial intelligence-based developments. And it is not necessary that the development was global. It is enough if it is a convenient application for delivering groceries home.The financial sector was also affected by interesting innovations and, as practice shows, this particular direction is ahead of everyone in terms of technical progress.Fintech is a sphere that deals with innovative technologies in the financial direction. For example, blockchain, bank payments, PayPal, cryptocurrencies, and so on.Experts say that there is no edge in this direction for development. Since the beginning of this year, about $22 billion has been attracted here.Is it worth investing in fintechExperienced market participants believe that fintech is considered the most dynamic area for investment, since its average annual growth is 10-20%, despite the crises.People need to pay for purchases, large companies need to make transfers, so financial processes do not stop.The fintech sphere became particularly popular in 2020, when the coronavirus pandemic began. Amazon, Alibaba, and eBay especially flourished during this period. Among those who have benefited from COVID-19 and influenced the fintech boom is FedEx, as well as Blend and, of course, SynapseFI.The development of this direction was also influenced by the growing popularity of the retail investment sphere, as well as the popularization of trading among ordinary people without any financial education.The ultra-soft monetary policy of the world central banks has also made a significant contribution to the growth of the popularity of the fintech sector. Large-scale central banks lowered the level of their interest rates with the beginning of the lockdown, and the White House made financial payments to business representatives and the population during the crisis.This large part of the liquidity found a place in the stock market, the share of which fell on the financial sector.Which fintech companies are better to invest inPayPal Holdings IncThe main specialization of PayPal is the implementation of digital payments. Almost everyone knows about it, because its services are provided in 200 world markets, which allows 375 million consumers to work smoothly. According to the results of the last year, the issuer's shares have risen by 40%.According to the financial report for the 2nd quarter of this year, revenue showed an increase of 19% year-on-year, reaching $6.2 billion, and the volume of payments increased to $311 billion.The growth in the volume of payments of the mobile payment service of the company called Venmo was 57%. Experts note the impact of online purchases by consumers during the lockdown on the growth of the indicator.PayPal does not leave the position of a leader in the business direction and develops the quality of digital payments.Since the beginning of last month, users of the mobile application have been able to buy cryptocurrencies and receive cash-back.According to forecasts, by the end of the 3rd quarter of 2021, PayPal's revenue should increase by 14% year-on-year. According to the results of the 2nd quarter, the indicator was 17%. As the eBay platform loses its popularity, the growth of the indicator slows down. But, if we do not take into account the latter, the issuer expects bright prospects.What are the plans for the release of a new PayPal application with an improved bill payment option and a direct deposit function. Analysts say that this may favorably affect the value of the company's shares.Now sellers are holding them at the $300 mark, but it is better to wait for the breakdown of the level to the $310 area to buy.Green DotThe Green Dot bank holding company is one of the first in the world to declare itself in the field of fintech. It was the first in the world to use prepaid debit cards.However, the growth of competition from the previously mentioned giant and Square pushed the issuer into the market.Despite this, the issuing bank is a profitable direction for Green Dot. Walmart Money Card customers can use the company's savings account with a yield of 2%. This will give them the opportunity to top up deposits via phone or make free financial transfers.Such a company's service as BaaS provides an opportunity for Apple, as well as Uber and Stash to use banking products without being a bank.A new maximum of $ 55.8 was marked for the issuer's shares in September, but then there was a rebound to $ 51.2. We should expect a movement to the resistance area of $ 70.MercadoLibreThanks to its successful activity in e-commerce, MercadoLibre is often called the Amazon of Latin America. And the Mercado Pago payment platform directly connects the company with the fintech direction.Billions of dollars pass through it quarterly, and if we are talking about processing payments for e-commerce services, the growth is even more serious.Cooperation with PayPal and a number of other payment services provides a profitable future for Mercado Pago.At the end of June of this year, when the issuer's shares reached $ 1,300, another wave of growth began. Now they are at the level of 1960 dollars, but market participants predict a breakdown of the maximum to the level of 2000 dollars.It is worth noting that the above companies only superficially describe how promising the fintech direction is. Every year, you can see the emergence of new startups with good growth potential. If you have the opportunity to buy shares of these companies, do it, but do not forget to keep an eye on other fintech ...

The Internet is a place where you can earn quite decent amounts nowadays. Almost everyone who actively uses the Internet, sooner or later begins to be interested in the topic of making money. At the same time, some people need an additional source of income. Others - more profitable options that will allow them to leave offline work, while maintaining the usual level of prosperity. Well, someone is even thinking about changing their life by organizing their own business on the Internet.Fortunately, there are now a lot of ways to make money on the web, among which you can always find options that are most suitable for your goals and requests. Some of them are available to almost everyone, for others you need certain skills, and in some cases you will also need start-up capital.How to make moneyHow to make money on the Internet for beginnersEarning on clicksCryptocurrency faucetsEarning on online surveysParticipation in airdrops and bountiesBooklets and micro-task exchangesAdministration of groups in social networks and messengersEarning money on your own websiteResale of websites and domainsSale of photo and video contentHow to make money on a YouTube channelEarning money on freelancingProviding SEO servicesEarnings on SMO and SMMTargetingBusiness as earning moneyIncome from the online storeSale of information productsEarning money on online coursesEarning money on investingHow to make moneyDetermine the size of the desired income.Choose the direction of earnings.Acquire the necessary skills (or improve existing ones).To establish the flow of customers (customers).Perform the assumed duties and receive the payment due.But in fact, of course, everything is not so simple. At least you will have to spend time and effort on each of the listed stages. As a maximum - also money.With the first step, in principle, everything is clear: you need to decide exactly what you want from earning money - for example, a small part-time job on the Internet, an average salary or a consistently profitable business. Depending on the desired level of income, as well as on the amount of time that you are ready to devote to earning money, you need to choose the ways of earning (we will describe their varieties below) that are most suitable for the existing criteria.If it turns out that there are not enough skills or they are not sufficiently developed to earn money in the chosen direction, you will have to work on them - take courses, read literature, watch thematic videos, etc.It is also advisable to pay attention to your existing predispositions.If you are a creative person and have never liked mathematics, you probably should not choose a freelance profession in the field of programming to earn money online. It is better, for example, to pay attention to web design or copywriting.When the necessary knowledge is obtained, you can finally start directly earning money.How to make money on the Internet for beginnersYou can earn money on the Internet in a variety of ways, which differ in the level of complexity and profitability. The simplest options are available to absolutely everyone — for example, receiving payment for viewing ads, clicks, likes, reposts, etc. Also, everyone can earn money from online surveys or by completing tasks on micro-task exchanges. However, in this case, the income level will be quite low.More complex options, such as freelancing or earning money from your own website or YouTube channel, require the above-mentioned pumping skills and considerable time costs. But on the other hand, it is quite possible to earn money for a living.If we are not talking about earning money from scratch, but about getting income from investments, you need to decide how much money you can invest and what kind of profitability you would like to have. Based on this data, you can start choosing the investment direction. Stocks, mutual funds, real estate, cryptocurrencies and even hypes - investments in any of these categories and many others can bring both fabulous profits and serious losses. Therefore, you need to carefully study each option and weigh all the risks.Read more: How to invest in stocks and what you need to knowBut more on this later, but first, let's look at the most elementary ways to generate income on the Internet, available to everyone.Earnings on clicksThe simplest category of earning money, which has existed almost since the birth of the Internet, is getting money for clicks. Such work is offered by many sites and anyone can do it. All you need is a computer or a smartphone with Internet access.Tasks for earning money can be very different-from simple clicks on advertising banners/links and likes/reposts in social networks to more complex actions like web surfing (navigating through the pages of the site according to the specified scheme).Usually all the work is done through browsers, but there may also be individual applications, for example, showing ads, the viewing of which is counted after a click.A significant disadvantage of this type of earning money is that the payment for such actions is usually quite low. Even if you spend a whole day on clicks, it is unlikely that you will be able to earn more than pocket money.Cryptocurrency faucetsAnother simplest way to make money on the Internet is through faucet sites. You can receive cryptocurrency for free on them for visiting or performing simple actions like pressing a button at set intervals.The coins collected in this way can be withdrawn and exchanged for real money. The catch is that it was possible to earn a serious amount with the help of cranes only at the dawn of the birth of cryptocurrencies.Now, only small pieces of cryptocurrency are paid for each click, for example, 10 Satoshi (0.00000010 BTC). That is, to get at least $1, you will have to click on the button in the tap 1000 times. Moreover, it is usually allowed to do this no more than 1 time per hour.Therefore, as a way to get a permanent income, cranes are not particularly suitable, but they can be considered to earn their first money on the network. In addition, most cranes have all sorts of lotteries built in, participating in which you can win more serious amounts.Read more: Listing of securities on the stock exchangeEarning on online surveysThere are quite a lot of sites on the Internet now that offer their users payment for passing surveys.An important advantage of this type of earning money is accessibility to absolutely everyone, since no special skills are required, except the ability to interact with web resources.As a rule, we are talking about marketing research, on the basis of which data is collected on the demand for goods/services of certain categories and brands. There are also surveys aimed at studying social attitudes in society.We can not say that this is a very profitable way of making money, since no more than$ 1 is usually paid for each survey, and their number per month on one site usually does not exceed several dozen. But for such purposes as replenishing a mobile phone account, it is quite possible to earn money.Although if you register at once in many services with Internet surveys and put their passage on the stream, in total it can become a source of quite acceptable earnings of money.Participation in airdrops and bountiesA little more, compared to cranes, you can earn by participating in airdrops and bounty campaigns of cryptocurrency projects. In this case, users perform a number of tasks aimed at popularizing the project, and in return receive a reward in the form of its tokens.In airdrops, most often we are talking about subscriptions, likes and reposts in social networks, joining Telegram channels and chats, publishing posts and comments about the project and other actions that, in principle, do not take very much time to complete. In addition, a referral program is often offered - receiving additional rewards in project tokens for inviting other users.In bounty campaigns, tasks are more difficult - for example, writing and publishing full-fledged articles, as well as creating graphic and video content. However, the rewards in bounties are often an order of magnitude higher than in airdrops.The main problem when choosing this method of earning is the search for really promising projects. Because if you participate in everything in a row, you will simply spend time promoting fraudulent projects that will not pay anything in the end.In addition, even if you get coins for your work, it is not always possible to immediately exchange them for real money. Usually you have to wait until the project token is added to some exchange where it can be sold.And even in this case, you can expect an unpleasant surprise - at the airdrop or bounty stage, the approximate cost of tokens in dollars is usually indicated, which you expect when completing tasks. But in the end, after listing on the stock exchange, the coin's exchange rate may be ten times lower than initially stated. As a result, the reward seems to be present, but the sediment on the soul remains unpleasant.And even in this case, you can expect an unpleasant surprise - at the airdrop or bounty stage, the approximate cost of tokens in dollars is usually indicated, which you expect when completing tasks. But in the end, after listing on the stock exchange, the coin's exchange rate may be ten times lower than initially stated. As a result, the reward seems to be present, but the sediment on the soul remains unpleasant.Nevertheless, if you learn to analyze projects that distribute tokens through airdrops and bounties in order to choose only really promising options, it is quite possible to earn several hundred dollars a month on this.Read more: What is an airdrop of cryptocurrencies - is the game worth the candleBooklets and micro-task exchangesAmong those who are looking for earning money on the Internet, sites that are called micro-task exchanges or booklets are very popular. On such sites, some users post tasks, and others perform them, receiving remuneration for this.Moreover, you can find work there for every taste-from simple tasks for clicks, subscriptions, likes, reposts, comments to more complex ones like registering on websites, installing applications and passing identity verification on exchanges. In fact, all the above-mentioned ways of earning are concentrated on the bookshelves.The level of earnings for completing tasks on such sites will directly depend on their complexity, the time spent on them and your skills. If you only deal with clicks, likes and other actions that do not require much effort, you can only earn pocket money.Administration of groups in social networks and messengersQuite an interesting way to make money. It involves taking on the responsibilities of managing groups in social networks or in messengers like Telegram or Viber.At the same time, you will most often be responsible for publishing posts, maintaining activity (for example, holding contests), monitoring the implementation of the group's rules by the participants, punishing violators (for spam, obscene language) , etc.A clear plus of this type of earning money is suitable for almost everyone who has accounts in social networks/messengers, free time and Internet access. The maximum that may be required is to watch several videos on the topic in YouTube in order to understand in general terms what will need to be done. Otherwise, all your duties will need to be clarified in direct communication with the employer.You can find relevant vacancies both on sites with ads for remote work, and in similar groups/channels in social networks and messengers. The amount of money earned, of course, will be influenced by the presence of work experience. Therefore, to begin with, if someone of your friends has their own group or chat, it would be nice to agree with them about passing a kind of internship as an administrator.Earning money on your own websiteEarning income from your website is one of the oldest types of earning money on the Internet. Today, a lot of activities can bring money to the site owner, from advertising to providing services and selling goods.The main thing is that the resource has a stable flow of visitors and a good rating in search engines. To do this, you need to create a website, choose its theme, fill it with high-quality content and optimize it from the point of view of SEO. Fortunately, to create web resources today, it is not necessary to have html programming skills, since there are many designers and platforms that allow you to quickly and easily build your own website from templates.What direction should I choose for my web resource? Everything will depend on your skills, interests and goals. For example, it can be a blog where you will share your own experience about what you are well versed in (tourism, personal growth, music, cinema, etc.).At first, of course, you will need to work hard on filling the site and attracting visitors. But on the other hand, having received a certain audience of readers, it will be possible to safely post ads on the pages of the site, please visitors with new articles and receive, in fact, passive income.  Depending on the chosen advertising service, payment can be received for readers' clicks on ads placed on the blog pages or for viewing them (or both options at once). The most popular option is a Google AdSense. Direct. However, in order to earn serious amounts through them, the number of site visitors should be measured in tens of thousands.Therefore, you can search for less popular systems that pay more, or sell space for banners directly to those who need advertising.You can also earn money on your website by placing paid links to other web resources in articles. If his rating in search engines is high enough, there will be plenty of people who want to increase their SEO indicators in this way. To search for customers, you can enter it in various directories of sites, as well as register on exchanges for the sale of links (for example, Gogetlinks).Another option is to earn money on affiliate links. To do this, you will need to register in services that pay for attracting new customers and place the received referral link (or banner) on the pages of your site. These can be various partner systems that pay interest on the sale of goods/services, or, for example, cryptocurrency exchanges and binary options brokers that pay a share of their income from attracted visitors.About such ways of earning money on the site, such as creating an online store or selling information products, will be described in a separate section about Internet business.Resale of websites and domainsA site with a good rating in search engines, a stable flow of visitors, a customized scheme for making money from advertising and other indicators can always be sold, having earned a considerable amount of money. However, if we are talking about selling our own resource, the profit will be one-time. After all, it takes too much time to create and promote a new site to put such a method of generating income on stream.Resale of sites is more suitable for regular earnings. In this case, you do not need to spend time creating and promoting a web resource, but you will need to invest your own funds. For example, you can find undervalued sites, buy them inexpensively, work to improve their performance, and then sell them at a completely different price.Well, or you can just engage in direct speculation, buying websites and immediately putting them up for sale for an increased amount of 5-10%.Similar manipulations to extract profit are also performed with domain names. For example, you can buy domains in different zones that are consonant with the names of commercially successful companies, and then offer them to buy them from you.To conduct such operations with sites and domains, specialized platforms are used that provide the necessary tools for conducting transactions and act as their guarantor. One of the most popular services of this type is Telderi.Sale of photo and video contentThere is an opportunity to earn money on the Internet for those who have a passion for photo and video shooting. We are talking about web services (stocks) that act as intermediaries between those who create content and those who are ready to buy it.Usually they charge a certain fee for their services, but its size is completely covered by the opportunity to profitably sell their photos and videos to a huge number of users of the service.By the way, artists who create their masterpieces, for example, in Photoshop, can also earn similarly. The graphics created in this way are also in pretty good demand among visitors to photo stocks.How to make money on a YouTube channelIt's no secret that the owners of popular YouTube channels earn very good money. The competition on this site is now, of course, off the scale, however, if you can offer its visitors high-quality content, you will be adequately rewarded.The first thing you need to decide on the topic — educational and entertainment channels are always particularly popular.A good audience is gathered by high-quality videos on the topic of online earnings, cryptocurrency and all kinds of life hacks.Also, to create video content that attracts an audience, you will need a good camera and microphone, some editing skills, the ability to write scripts and at least some acting skills.An alternative to posting prepared videos can be conducting streams, for example, gaming. In this case, you will need a powerful PC, experience in computer games and the ability to comment on your actions in a fascinating way.The main advantage of earning money on your own channel is the ability to receive money from several sources at once. Firstly, you will receive payment directly from YouTube (for displaying advertisements in your videos), and secondly-if you have a sufficient number of subscribers, various companies can directly order advertising of their brands from you, in addition, you can earn extra money on donates when conducting streams.Earning money on freelancingOne of the most common ways to earn money on the Internet is freelance. It is based on the temporary provision of remote services on the terms agreed with the customer. A special charm of freelancing is independence, since you can work at any time convenient for you and independently adjust your salary by changing the number of orders taken to work.Most of them are freelancers in such areas as programming, design, copywriting and translations. If you already have skills in these or any other areas, it remains for a small matter — to find a customer.The easiest way is to search for freelancers on exchanges, for example, on Upwork.Although they will take a small commission for their services, but the chances of finding high-paying orders on your topic will be much higher than when searching independently on thematic forums, social networks or Telegram chats. In addition, such sites act as guarantors in the work of freelancers with customers, that is, there should be no problems with paying for adequately performed work.On freelance exchanges, there are always a lot of orders available for execution in many industries, but if you want, you can also publish your own proposals for the provision of services. But before you try to take the first order, you should fill out your profile, not forgetting to describe in detail the skills, prices for services and portfolio (examples of previous completed works).If you do not have any special skills suitable for remote work at the moment, you will have to go through the training stage.Freelancing in the field of programming and web design is, of course, more attractive, since it is the highest paid, but it can take quite a lot of time and money to get the necessary skills in these areas.Therefore, if you set a goal to start earning online as soon as possible, the first thing you should pay attention to is copywriting (writing texts). In this case, to get the initial skills, it will be enough to take thematic online courses or even do without watching videos on YouTube. After that, after a little practice, you can go for the first orders on exchanges.Also, freelancing can include SEO, SMM and SMO promotion services, but due to the specifics of these areas, it is better to allocate them into separate subcategories of this type of earnings.Providing SEO servicesA fairly popular direction in Internet earnings is the provision of services for optimizing websites for search engine promotion. Of course, to do this, you will first have to thoroughly study the topic of SEO.You can do this either independently with the help of materials from the network, or by taking courses. The first option is usually free, but long, the second is paid, but fast.After studying the theory, it is desirable to try out the acquired skills in practice, ideally by promoting your own website created from scratch in search engines. But you can also take someone's web resource to work for a symbolic price or for free, warning its owner that this will be a kind of internship.If you can bring the site to the TOP for at least several search queries, you can start searching for customers. The easiest way is to register on the freelance exchange (for example, Upwork) and place your ad there. At first, the payment is likely to be low, since its level depends on the performer's rating on the site and whether he has a portfolio of previous objects. At the same time, the exchange will take some part of your earnings as a commission.Or you can directly search for potential customers on various forums on the topic of SEO optimization, as well as in groups in social networks and chats in messengers.Earnings on SMO and SMMThese types of earning money online are a little similar to the previous one. The only difference is that the promotion is carried out not in search engines, but in social networks.In the case of SMM, we are talking about the promotion of groups and pages of companies and brands in social networks. In turn, SMO specialists are engaged in optimizing sites for attracting visitors from social networks (for example, placing buttons and widgets for subscriptions, likes, reposts, etc.).As in the case of SEO, first you will have to learn these specialties that are quite popular in our time. Then you need to hone the acquired skills in practice. And only after that, you can start searching for customers (through the same channels — on exchanges, forums, in social networks, etc.).TargetingInstagram Facebook is currently in particular demand for the services of experienced targetologists, that is, those who are engaged in setting up advertising on social networks, in particular on Facebook and Instagram. The thing is that advertising in these social networks is much cheaper than contextual advertising and at the same time has excellent conversion rates. At the same time, it is very difficult to independently understand the setup of advertising cabinets and learn how to create really effective campaigns.Therefore, most of those who want to advertise their business through Facebook and Instagram hire targeting specialists, which, by the way, there is still a significant shortage.After completing the study of this profession, you will have to practice for some time on free clients, but in the end, after 1-2 months, it is quite possible to start receiving the first serious amounts for setting up advertising cabinets.Moreover, unlike many other types of online earnings, you will not have problems finding customers.It is enough to leave a few customers satisfied and the fame that you are a good targetologist will instantly spread across social networks.Business as earning moneyOne of the most difficult types of earnings on the Internet is the organization of your own business. Most often, we are talking about creating a website through which you will sell something — goods, services, courses, etc.Of course, it is quite difficult to start your own business in an online format. This will require not only an idea, but also a calculation of all the stages of creating a business, as well as the costs of their implementation. Also, when choosing a market segment that will include your business, you need to calculate the level of competition and potential income. These steps will require the services of different types of specialists.Some, of course, manage to create a business from scratch and come to success. But such cases are quite rare. In addition, if you do everything yourself, this process can take a long time. Plus, at many stages, you most likely will not have enough knowledge. Therefore, if there is an opportunity, it is better to hire those who will help in website development, market analysis, content filling, SEO promotion, etc.Let's consider three main options for organizing a business on the Internet.Income from the online storeDespite the fact that the e-commerce niche has existed for a long time and is very popular, it is never too late to create your own online store. The main thing at the same time is to choose a promising direction of activity. At the moment, the easiest way to develop your business is by doing:Direct resale of goods purchased from foreign suppliers, including from AliExpress, Joom and similar services.Creating your own brand and repacking niche products purchased from local manufacturers, for example, wallets, car seat covers or clothing. In this case, for prestige, it will be desirable to work through a personal website.Dropshipping, that is, the sale of goods, in which you are responsible only for finding a buyer, and the delivery is organized by the direct manufacturer. In this case, you will not need to think about the storage, packaging and shipping of goods, and the entire business will work exclusively online.The latter option is now particularly popular, since a whole chain of time and financial costs is excluded.Sale of information productsThis branch of earning money is called infobusiness, because it is not about selling goods, but information. To be bought, it must be fascinating, unique and solve some problems.Most often, information is sold in the form of e-books or videos. But this is already the final product for which you need to find a buyer. But to get it, you need to organize the creation of content for which people are willing to pay money.In fact, you need to write instructions for solving a problem and then convert it into a video or a book. If you have any unique knowledge or skills, you can do it yourself. Otherwise, you need to do rewriting — find useful materials on the web and rewrite them in your own words. Ideally, you need to hire someone for this.To organize an infobusiness, it is best to choose already proven, popular topics, for example-health, life hacks, earnings without investments, family and home, repairs, parenting, self-improvement, psychology, etc.In order for the created information product to be well bought, it should contain as little complicated terminology and dry theory as possible. Instead, there should be a squeeze of utilities on the chosen topic with illustrative examples. In addition, in order to increase your credibility in the eyes of buyers of information products, it is worth mentioning that you have all sorts of diplomas, certificates and diplomas from conferences on the described topic (ideally, you should have them).Earning money on online coursesAnother type of knowledge sale is the organization of online courses. In this case, you can not do just retelling the information found on the network. To organize a profitable business, you will really have to become an expert in any industry. Of course, you can sell courses in the video format, as described above, but tickets for events organized in the form of "live" online lectures and master classes are sold much better.As in the case of infobusiness, in order to make good money on courses, you need to choose a niche, the solution of problems in which is a very popular request of Internet users. This can be the psychology of the relationship between a man and a woman, the proper upbringing of a child, creating your own business, SEO, SMM, SMO and many other areas.Earning money on investingOne of the most difficult ways to earn money on the Internet is investing. The subject of investing money can be shares and bonds of companies, cryptocurrencies, indices, ETFs, futures and many other assets that can be bought and sold through exchanges or brokerage services.The principle of making a profit in this case is no different from commodity speculation - you will need to buy at a low price and sell at a high price (except for margin trading, where the opposite direction of transactions is possible). The only difference is that all operations are organized through online tools, and the price of assets is constantly changing under the influence of many market factors.The result of investing can be both profit and loss. Therefore, in order to increase the probability of the first option, it is necessary to acquire appropriate knowledge, in particular in the field of technical and fundamental analysis.Currently, most investors most often focus on trading Forex assets or transactions with cryptocurrencies. Moreover, the latter option is becoming increasingly popular, in particular due to the ease of access for newcomers to exchanges and the increased volatility of cryptocurrencies, which makes it possible to obtain large profits in a short time (as well as losses).Also, in addition to direct trading of cryptocurrencies on exchanges, you can choose alternative options. For example, investing in tokens of new blockchain projects during their IEO or ICO campaigns. If you choose a really promising project, you can hope for several hundred or even thousands of percent of the profit. However, the risk of receiving a similar loss is also always present. Therefore, it is worth entering this area of investment only after a thorough acquaintance with the crypto market.As you can see, there are plenty of opportunities to make money. Everything depends only on your interests, the availability of free time, knowledge in certain industries and, in fact, the desire to study any direction of earnings.Read more: What is an ...

About AlibabaAlibaba is a global retailer and commercial mobile resource from China.The Chinese market of online retailers indicates that Alibaba has reached the status of a monopolist. The main financial indicators of the company are obtained through sales in the Chinese market.The sale on the Alibaba service is an online auction of goods made in China. There are a large number of different products on the platform. These are clothing, accessories, cosmetics, electronics, cars, and food sales.Alibaba is an issuer that includes a combination of global resources of Amazon, eBay, PayPal. The company is a leader in the online retail market in China. The corporation consists of an online retailer Alibaba.com, resources of AliExpress, Taobao, Tmall. The corporation also includes a number of other services.Due to the coronavirus, the corporation was able to increase its performance. Consumer demand for cloud services has grown. The restrictions imposed by the Chinese state can be called a risk. In the next part, we will take a detailed look at the opportunities and risks of investing in Alibaba.Company structureThe main difference between ALibaba and its main competitor – Amazon-is the lack of storage facilities and direct sales. Alibaba manages Chinese territorial platforms to form a meeting place for sellers and buyers. The company receives revenue from commissions paid by sellers, as well as from cloud services.The corporation has its own payment system Alipay, which is used for operations when operating a subsidiary of Taobao.The company includes subsidiaries:Service from the direction of B2C-Taobao. The retail platform provides approximately 2 billion different goods and services for Chinese consumers.Tmall sells products of world-famous brands. For example, Ralph Lauren, Nike, Piaget.Tmall Global is a global platform for trading activities in the consumer market.AliExpress is an international online retailer that sells at retail.Alibaba.com is a global retailer specializing in wholesale sales.Alibaba Cloud sells web platforms. Similar services can be called Amazon AWS and Microsoft Azure.Freshippo – new generation grocery stores.Retail tradeRevenue for the last quarter was 206 billion yuan, and for the previous year this number reached 154 billion dollars. Such indicators were obtained due to high revenues from the new retail network Sun Art. Excluding this segment, revenue increased by 22%. Operating profit indicators fell by 11% due to investment in large projects. For example, these are Taobao Deals, as well as Community Marketplaces. Net profit decreased by 8%, reaching 42 billion yuan, which translates to 6.6 billion dollars.Revenue from Taobao and Tmall subsidiaries selling retail goods rose by 14%. This is below the overall growth rate of 22%. The indicators of retail sales of the global market, logistics service and computing have increased significantly, from 29% to 54%.Alibaba has difficulties with online retail services. The competitive forces of companies have increased JD.com and Pinduoduo, operating in the Chinese market. If revenue growth slows down, traders should rethink their intention to invest in the company.Alibaba Cloud ServicesAlibaba is a global leader in the online retail market. Recently, the company has released a promising project Alibaba Cloud.In the first quarter of 2021, revenue from this industry amounted to $ 2.5 billion, which is 28% higher compared to the last fiscal year. Alibaba's profit was $ 52.5 million, and for 2020, the net loss reached 1.1 billion yuan.The data for the current year was slowed down, and now the indicator reaches 29%, and last year cloud services grew by 59% year-on-year.Representatives of Alibaba believe that growth has slowed due to the fact that one of the company's largest customers did not use a foreign cloud service. Alibaba Cloud is a promising project, EBITDA increases its indicators. If the segment continues to grow, the level of profitability and profit will only be optimized.There is a high probability that Alibaba Cloud will steadily increase its performance in the near future, as an increasing number of companies use cloud services.We can observe the development of Cloud technologies: This can be seen through the use of 5G technologies, the development of self-driving cars and the Internet of Things (IoT). The analytical company Canalys believes that if Alibaba takes 40% or more in the Chinese cloud services market, the corporation will be able to take a leading position.Investing in the futureThe company invests money both in its own projects (such as Alibaba Cloud) and in the foreign segment (acquisition of Lazada).According to the latest report, Alibaba was able to double the data of its commercial business. The issuer invested $ 2.2 billion, and in 2020 this number reached $ 600 million. These investments were able to reduce the data on short-term profit results, which caused an increase in competitive advantages over Pinduoduo and JD.com.Such investments are a good foundation for future development.In addition to reinvesting in its development, Alibaba is engaged in share repurchase. The buyback was increased from the level of 10 to 15 billion dollars for 2022. This is the right decision, since the securities have reduced indicators over the past year.Risks for investorsIn the 1990s, goods from China were not perceived as something of high quality. But over the past decade, new corporations have emerged that use modern technologies. They were able to achieve high results in the global market. Alibaba was the first of this list: the company's creator, Jack Ma, was able to get high results.The owner had an interest in implementing American business management principles: following the company's own interests, influencing legislation. As a result, we see that this was impossible in China.The ruling party reacted negatively to the rapid development of private business. Over the past year, strict sanctions have been imposed on large enterprises from China.Alibaba has been heavily influenced by the state. Last fall, they blocked the implementation of the IPO of Ant Group in the amount of $ 37 billion.Jack Ma decided to rethink the further development of the corporation, deciding to improve relations with the government. At the moment, it is almost impossible to notice it in the public space. Large Chinese businesses have been subjected to restrictions from state authorities over the past six months, and this has reduced interest in companies in the stock market.But this is not all the risks for potential investors. It is necessary to assess the stability of Alibaba in the global market. Consumers may be negatively disposed towards China for a number of reasons: involvement in the development of the coronavirus, non-compliance with human rights, the level of geopolitical risks in the South China Sea, and the likely sponsorship of cyber fraud operations by the Chinese government.The US authorities may initiate the introduction of economic sanctions for the PRC. Relations between the states are strained due to trade conflicts that began under the last President Donald Trump.Now any investment in corporations from China carries a risk. We now advise you to monitor the news field in China, and with the growth of the economy, you can pay attention to stocks that are at multi-year lows.Read more: How to invest in stocks and what you need to knowAbout LyftLast week, a new report of the Lyft enterprise was criticized. adjusted profit was achieved earlier for the 1st quarter than the forecasts indicated.Adjusted EBITDA was $ 24 million. These forecasts indicated a loss of $ 40 million. Revenue amounted to $ 765 million, and according to forecasts it was $ 697 million.After the report is released, we leave the previous forecast. It is planned to change the direction of securities in the buyers ' market. Now the level of quotations reaches $ 53, and the issuer is going to increase the data to $ 85-90.About eBayWe also analyzed the data from the eBay report. The profit and revenue indicators turned out to be more than predicted, and this is $ 15.68 per share. Last year, this number reached $ 0.96. Revenue increased by 14%, amounting to $ 2.67 billion, and for 2020 this level was about $ 2.34 billion.The number of users of the service fell by 2%, as a result, it is 159 million people.After the release of the report, the shares went up. Prices increased by $ 9: from $ 65.50 to $ 74. We predict an increase in shares. The future goal is to reach $ ...

China is considered a country with an economy that is developing rapidly, because it has numerous corporations that have attracted investors of various levels in recent years. And at the moment, financial market participants have good reasons to avoid investing money in this country. Let's see why.To begin with, there are still conflicting relations between the United States and China, which have not changed since Biden became president. Trump, his predecessor, during his rule, heated the degree of conflict between the countries to a very high level.The second reason is the problems of Chinese enterprises with the US regulator. The end of spring of this year was marked by the fact that the SEC began implementing the law on delisting for Chinese enterprises.And finally, the third reason is the recent decisions of the Chinese authorities, which were aimed at taming the largest corporations in China. We will discuss these and other aspects in more detail.Taboo on educationIn recent years, the tutoring industry in China has grown rapidly, as the middle-class society has tried to send its children to the best institutions in China.It was predicted that in three years, the total revenue from this area of online education services will be 491 billion yuan ($76 billion). The total market volume before the introduction of the measures actually reached $100 billion. As a result, the popularity of these enterprises on the stock exchange has increased.The shares of the industry began to fall after the Chinese leadership announced that they plan to introduce new rules for this area.According to them, companies are required to be registered exclusively as non-commercial. They no longer have the right to mobilize private capital, and even foreign capital, and they can no longer conduct IPOs.Consequently, all these companies will now have to completely change the business model.Read more: What is delisting on the stock exchange?The Fall of the megamonopolyChinese consumers, unlike Western ones, prefer price to quality. If the brand has not reached a high level of social or economic status, the consumers of the Middle Kingdom become very sensitive to value.This greatly affects the economy and the organization of business in China. In China, the margin is so low that businesses have no choice but to specifically reduce prices. This is done in order to make the product more attractive to customers.One of the most striking examples is Xiaomi. It has become a leader in the sale of smartphones, gadgets and household appliances. Apple has a market share of 17%, and this percentage is even higher in mainland China. Xiaomi reached this level only after limiting the profit margin of smartphones at the level of 5%.This led to the emergence of Chinese technological monopolies, and the state lost control over some of them.Last year, the Chinese government began to tighten control over technology companies. In November last year, the government banned the Alibaba subsidiary Ant Group from entering the stock exchange. Then it turned out that Ant Fintech is turning into a financial company that is subject to banking regulators.Then the pressure on technology companies increased: at the end of 2020, the authorities began an investigation into Alibaba itself. The online store was accused of violating the antimonopoly legislation. The investigation lasted 3.5 months, and the company was fined a record $ 2.78 billion.The latest news that worried investors turned out to be the beginning of an investigation by the Chinese authorities into the Didi taxi service, as the investigation began the day after the success of the IPO on the New York Stock Exchange.Read more: What is the New York Stock Exchange (NYSE)Thus, the DiDi service is now 9 years old, but during this period the company captured 88.7% of the Chinese market. The liler company is on the market, it changes the tariffs and fees of drivers as it wants, and all because there are no stronger competitors.Therefore, it is not surprising that DiDi attracted the attention of the regulator. The Chinese authorities recently banned the use of the company's application, and now new users cannot register. It is planned to fine this company for a large amount for violating the norms of legislation on consumer protection. We remind you that earlier Alibaba paid the largest fine in China for the same reason.It seems that the Chinese authorities are taking their giants seriously. Alibaba and Didi are the first companies to be targeted. The smoke from the shelling of the country's leadership of these technology giants has not yet dissipated, and the Chinese authorities have already dealt a blow to the subsidiary of the holding company Tencent, demanding that it give up music licensing rights, and also imposed a fine for insolvency.The US is a key opponent of ChinaChinese businesses are suffering from tensions between the US and Beijing. Thus, large Chinese companies operating in the field of e-commerce (Alibaba, Baidu, etc.) are under pressure.And the restrictions imposed by the United States on trade with China have already significantly affected the cost of manufacturing goods and components from the United States in China, which were previously sold on these e-commerce platforms, limiting technological partnerships.In addition, under Trump, a law was passed according to which foreign companies registered on US stock exchanges must provide extensive verified reports to US regulatory authorities. In fact, this measure was introduced quite recently.Approximately 250 Hong Kong and Chinese companies with a capitalization of $ 2 trillion faced tougher audit requirements. Not everyone can provide quality control of audits. As a result, there is a risk that some of these companies will be excluded from the listing, which could directly affect all Chinese shares.These SEC measures may deter foreign direct investment in China. Recall that the growth rate of foreign investment in 2020 exceeded the growth of China's GDP. Without foreign direct investment, China's long-term plans to increase domestic consumption and gradually liberalize foreign ownership in various sectors of the economy will be suspended.In May of this year, the European Commission decided to ban foreign companies from bidding and buying companies on the domestic market. All these measures are directed against Chinese-funded companies and are aimed at the microelectronics sector.Read more: Listing of securities on the stock exchangeEconomic downturnIt's not just politics that makes the Chinese stock market unattractive. The economy of the Middle Kingdom was the first in the world to start growing after stagnation, which was caused by the blockade of the coronavirus, but the growth rate slowed down.Thus, according to the latest report, the growth of the Chinese economy in the 2nd quarter fell to 7.9% compared to last year from 18.3%. The central Bank of China has reduced the financing that many banks must keep in reserve.As commodity prices have risen, the industry's inflation rate has reached its highest in 10 years. At the same time, production slowed down due to the disruption of supply chains.Read more: Causes of inflation and scientific approaches to their studyThe growth in the service sector also slowed down due to a new outbreak of coronavirus in southern China and further restrictions that reduced the activity of consumers and enterprises.Production in the country also slowed down. Industrial production increased by 8.3% in early summer compared to 2020, showing a slight decrease compared to an increase of 8.8% in May. Car production fell by more than 4% in June compared to a year earlier due to a shortage of chips.Unemployment is also a concern. The urban unemployment rate has remained at 5% in recent months. At the same time, the youth unemployment rate jumped from 13.6% to 15.4% three months earlier.In this context, problems with the US and the EU may lead to an even greater outflow of investment from China, if, of course, US regulators tighten sanctions against this country.Buy or sell?At the moment, the technological sphere of the People's Republic of China is in deep decline. Such promotions as JD.com and Alibaba, have fallen in value by more than 30% from their maximum.However, we do not believe that such a low price level is now profitable for buying. The Chinese leadership of the country has not yet completed the cleanup. New measures can start for any reason and on any day. Sometimes the information that led to the decline of shares does not have time to reach even the foreign media, and investors have to make decisions blindly.It is difficult to say when the Chinese authorities will stop, and it is unknown which of the companies will remain in the game. We can only wait and see.Read more: People's Bank of China (PBOC) - history, structure and ...