Mark Cuban sentiments that Alibaba Group Holding Ltd (NYSE:BABA) should not have been allowed to list in the U.S as a public company continues to elicit debate with CNBC’s Joshua Brown arguing the billionaire got it wrong this time around. The debate is centered on whether the company would be able to fend off any requests made by the communist regime in China about providing any inside information that can be used to gain an advantage on trading.
Brown argues by barring Chinese companies like Alibaba Group Holding Ltd (NYSE:BABA) from enlisting in the U.S, would only amount to hindering innovation on companies starting up and wishing to follow up on the footsteps of Jack Ma.
“Let’s say we don’t allow companies like Alibaba to come public hear on the New York Stock exchange, which, by the way, top flight auditors, top flight securities attorneys. […] If we don’t encourage that either they go to London in any way whatever and then B we are discouraging a whole new generation of emerging companies that should be emulating Alibaba,” said Mr. Brown.
Cuban may on one hand have a point in that it will be extremely difficult for the SEC to regulate Alibaba on inside trading based on the fact that the Chinese government remains a gatekeeper on its operations. Stephen Weiss argues that the SEC has standards that he believes should be up to the task in keeping Alibaba Group Holding Ltd (NYSE:BABA) under wraps in terms of acceptable trading practices
Investors should be allowed to make their own decision in terms of companies they wish to invest in according to Weiss, without the SEC placing restrictions on the same. Jon Najarian remains a strong believer on Alibaba success story terming Cuban sentiments ludicrous. The billionaire ridiculed Alibaba listing in the U.S despite still owning stakes in it
“I think it is ludicrous quite frankly that he even made those comments because this is the most stringent accounting standards there are. It actually provides transparency and gives confidence to what Alibaba Group Holding Ltd (NYSE:BABA) truly is; I still own the stock,” said Mr. Najarian.
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