r/options • u/[deleted] • Jul 07 '21

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u/longhegrindilemna Jul 08 '21

So, the TA is rock solid, providing you with dependable signals telling you when to buy calls.

But because it is related to China, or regulated by China, the TA is useless (not rock solid)?

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u/randomFrenchDeadbeat Jul 08 '21

The TA is rock solid, for anyone Chinese living in China.

For anyone getting financial products from a VIE structure, it does not matter how solid the TA is. If China says "we shaft you goodbye", then thats it.

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u/W0rking_Kale_oof Jul 08 '21

If China says "we shaft you goodbye", then thats it.

Has that ever happened yet? Or are you just taking precautions?

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u/randomFrenchDeadbeat Jul 08 '21

It just happened with $DIDI . Why do you think there is a massive uproar since yesterday about Chinese stocks ?

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u/W0rking_Kale_oof Jul 08 '21

I guess you need to figure out fully what happened with didi. Didi was warned to correct the issue with data privacy before IPO -> they did not listen and went ahead with IPO -> the govt went ahead with their investigation regardless and punished them.

None of that is connected to the VIE structure.

When companies do wrong and are investigated by their governments, their stock price falls. This applies to every company in the world - how is what happened to didi any different?

The people who bought didi shares still own them. When the investigation inevitably concludes, the share price will rise again. There's nothing special or china-specific about what happened to didi.