Alibaba IPO: Are the Risks Too Big to Ignore?

Alibaba IPO: Are the Risks Too Big to Ignore?

Assessment

Interactive Video

Business, Social Studies, Other

University

Hard

Created by

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FREE Resource

The video discusses the use of Variable Interest Entity (VIE) structures by Chinese companies like Alibaba to circumvent foreign ownership restrictions. It highlights the risks for investors, as they buy shares through contracts rather than direct ownership, which the Chinese government could revoke. Despite these risks, Alibaba's valuation is attractive due to its strong financial health and growth prospects. The Chinese government's role in Alibaba's success and potential future actions are also examined. The video concludes with an analysis of market trends and investor behavior, noting the optimism despite significant risks.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the implications of the Chinese government's potential actions against Alibaba in the future.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the key economic indicators that suggest a strong future for Alibaba within the Chinese economy?

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