Can you buy Chinese concept stocks on Gate? I tried BABA

In Gate's US stock list, there are actually some Chinese concept stocks, such as Alibaba (BABA), Pinduoduo, JD.com. I bought 0.01 shares of BABA out of curiosity, costing about $80 (not sure of the exact price).

The reason for buying BABA is simple: undervaluation. The P/E ratio is less than 10, with cash piled up on the books, and its e-commerce and cloud businesses still competitive. Plus, China's consumer market is still long-term optimistic.

But after holding for two weeks, I sold it and made a few cents profit. Why sell? Because I realized I couldn't assess policy risks. Today there's an antitrust crackdown, tomorrow data security issues, and the day after there might be other concerns. How are these risks reflected in the valuation? I can't figure it out.

Additionally, the liquidity of Chinese concept stocks is much worse than NVDA. The bid-ask spread is large, sometimes orders placed don't fill for half a day. The trading experience on Gate isn't as good as mainstream US stocks.

So I no longer touch Chinese concept stocks. Not that they are bad, but I lack the ability to evaluate policy risks. The principle of my circle of competence: only buy what you understand.

Of course, if you have research on policies or are willing to accept this kind of uncertainty, BABA is indeed cheap now. Buying on Gate is also very convenient. But I choose to skip it myself.

This experience has strengthened my principle of "buy the leading companies, buy simple businesses." NVDA's business logic is straightforward: sell chips, supply exceeds demand. BABA's business is also simple, but with the variable of policy. The more variables, the harder to judge. Less is more.

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