There are plenty of well established Chinese companies that have been profitable and paying dividends for years. You might hear about some "scam' stocks from time to time, but that's no different than the countless US companies that have gone bankrupt for whatever reasons. You've all got all those dot com busts with no revenue model; two companies in my area that aren't household names, Evergreen Solar went BK in 2011, A123 BK in 2012 after trading on the market for several years.
Look at the charts for this century and stocks like CEO and PTR completely destroy US oil king XOM. Over a 5 year chart BIDU and TCEHY both outperform GOOGL.
With BABA you are paying for potential, pure and simple, in the same way you would be going with an AMZN or TSLA. These companies if successful can scale very large, much more so than a DIS or an AF15.