Bloomberg has been tracking Alibabas re-listing in Hong Kong for weeks, and people familiar with the matter say that although Alibaba has not yet finalized specific funding targets, the issue may raise as much as $20 billion. Todays news almost confirms the rumors of the past few weeks, but likewise, Ali responded to 36 krypton again, not commenting on market rumors.
If Ali finishes its listing, Tencent, the Hong Kong Stock Exchanges shareholder for many years, will face its biggest competitor in both the business and capital markets.
According to the surging news, the Hong Kong Stock Exchange, another protagonist in the matter, also responded to Alis listing without comment.
Alibaba (1688.HK) B2B company first landed on the Hong Kong Stock Exchange in 2007, which was the earliest business when Alibaba started its business. However, on the one hand, the international financial crisis has hit the global trade environment more or less.
On the other hand, the C2C business Taobao network represented the rapid rise of the electricity supplier form, and soon surpassed the volume of B2B business, and derived Alipay, rookie network, Ali cloud and other sub businesses that spread all over the Alibaba ecosystem. According to the fourth quarter of fiscal year 2019 (the first quarter of 2019), Chinas wholesale plus international wholesale accounts for only 5% of Alibaba Groups total revenue.
Influenced by multiple factors, Alibaba B2B chose to privatize and withdraw from the Hong Kong Stock Exchange in 2012.
In 2013, Alibaba Group (all intra-group businesses including Taobao) sought to list in Hong Kong under a partnership system with different rights. However, the Hong Kong Stock Exchange at that time did not have such a rule and could not be reformed rapidly in the short term.
In September, Cai Chongxin, executive vice chairman of Alibaba Group, wrote: We do not expect Hong Kong regulators to make changes for an Alibaba company. Lu Zhaoxi, then CEO of Alibaba Group, also said that the innovation of governance structure of emerging enterprises in the Hong Kong market still needs time to study and digest.
Eventually, Ali abandoned listing in Hong Kong and went to the New York Stock Exchange in 2014, raising a total of $25 billion to become the largest IPO in the world. Over the past two years, the market value of Alibaba (BABA. US) has exceeded $500 billion on several occasions, reflecting Hong Kongs Tencent Holdings (00700.HK), becoming the two largest Internet companies in China. By the end of June 12, Alis market capitalization was still over $410 billion, and Tencent was on the top 10 list of companies with global market capitalization.
After the loss of Ali, the Hong Kong government, the Hong Kong Stock Exchange and investors realized that the different rights of the same shares were prevalent in the Internet New Economy Corporation. Many officials, including former Financial Secretary of Hong Kong, Liang Jinsong, and CEO of the Hong Kong Stock Exchange, Li Xiaoga, also expressed regret that Ali had not been listed in Hong Kong.
To avoid losing more market opportunities similar to Alibaba, in April 2018, the new rules of the Hong Kong Stock Exchange finally allowed dual-equity companies to go public, and Millet became the first beneficiary. Subsequently, more new economic companies, such as American delegation commentary and Yingke, took advantage of the situation to list in Hong Kong.
In an interview with Finance and Economics, Li Xiaoga talked about Alibabas return to Hong Kong. He said Ali would come back when he thought the Hong Kong market could solve its problems. Currently, it does not need financing or an additional trading place - unless it brings new vitality. But Ali will come back 100 percent, its only a matter of time.
All these pave the way for Alis second listing in Hong Kong. In todays international situation and uncertain market environment, Alis coming back to Hong Kong along the river will help it maintain its dominant position in the Chinese market. What is more interesting is that Ali and Tencent, the old rivals of Chinas Internet, can finally compete with each other in Hong Kong.
Source of this article: 36 krypton responsible editor: Wang Fengzhi_NT2541