The financial community is upset that the NYSE and the SEC allowed this type of company to sell stock here. The SEC ignored a report from Congress in the process, demonstrating that there really has not been significant reform in the stock markets despite all the talk of protection.

Not only is Alibaba the source of counterfeit goods (including coins), but the original owners control the company (and the new shareholder don't have any say in it). If a shareholder has a beef with the management, he has to go to a Chinese court and seek Chinese justice. Traditional American protections do not apply.

Many in the financial community worry that this will open the floodgates to other abusive setups and American investors will no longer be able to count on protections like "minority shareholder rights," etc.