[sgbuffett]

how can an under valued stock like Alibaba goes up ?

Lets assume Alibaba us undervalued.

There are several ways for it to happen

1. International investors change their view of China andbstart buying. This is the fastest way.

2. Company accumilate cash and use it do do share biy backs.

3. Company starts giving dividends and raising it over time.

4. Activate mainland Chinese funds and investors to channel pension funds and personal savings to invest in Chinese stocks. 

Only (2) was in play in 2024. (4) to a lesser extent the southvound stock connect was activated resukting in mainland funds being abke to buy Alibaba.

Alibaba actually rose 16% in 2024 due to above. 

The thing is there are other options like Meituan and Xiaomi etc for mainland investors. These stocks are actually growing. For international investors Tencent and Lenovo are more global and have better growth.