Alibaba Group Holding Ltd. is the Chinese biggest e-commerce company. According to Reuters, the e-commerce giant has delayed its listing in Hong Kong. Alibaba’s listing in Hong Kong is predicted to worth %15 billion. Hong Kong growing political unrest is expected to be the main reason for that.
Hong Kong is one of the largest financial Hub in Asia. Besides, the city’s financial market is more open and international than other exchanges in the region. Therefore, Hong Kong remains the best place for Alibaba to list.
Initially, the company’s plan was to list in August. Yet, it currently experiences political instability. The city has seen 11 consequential weekends of pro-democracy protests.
Hong Kong’s benchmark Hang Seng has fallen to seven-month lows last week. Besides, Police and officials have tried their best to stop the protest. Police, for instance, have fired over 1,000 rounds of tear gas. Moreover, 700 people have also been arrested.
However, if the political tensions de-escalate, the company still can list in Hong Kong. Up to now, the company still has not announced the new timetable. But, many expect Alibaba to launch the deal in October if the company still seek to raise $10 billion – $15 billion.
Alibaba’s Previous Listing
Five years ago Alibaba decided to list in the United States after negotiations with Hong Kong broke down. At that moment, Hong Kong regulators refused to allow the online retail giant to list. The reason is that the list will give Alibaba founder, Jack Ma, and other managers the ability to control everything they want.
Yet, that rule has been changed last year. Hong Kong now has allowed companies with large market values to have different voting rights for individuals that have crucial roles.
Alibaba plans to list in Hong Kong will help the company to diversify funding channels and add liquidity. Moreover, it will also help the tech giant to expand above its core business.