I'm not bearish but I do think people are not seeing the downside clearly enough. At the drop of a hat the govt can make http://JD.com and Richard Liu or even the entire foreign owned market disappear. This must be reflected in the stock price.
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Perhaps you interpret a 100% extraction of profits in perpetuity differently - that's fair. More to the point, I don't mean the Chinese government can't do exactly what you suggested. I just think its disingenuous to think China is the only one that does it.
Obviously it is not. However it is quite obvious that the chance of this happening in China is significantly higher than in the U.S. therefore whatever you think the company is worth, you must discount it, in my eyes, heavily.
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I don't disagree with your broad brush that the probability is higher in China. But a broad brush does not apply well to n=1 situations. Significantly higher than a remote probability (assuming the risk of this happening in US is remote), is still fairly remote.
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My brush isn't that broad. 1. PRC has made it clear that it wants ownership in firms like Alibaba, Tencent, and http://JD.com - which is not par for the course when it comes to stock ownership 2. We are talking about a country where this conversation cannot even exist
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