Daily Management Review

Alibaba postpones listing in Hong Kong due to unrest in the city


Chinese e-commerce giant Alibaba Group Holding Ltd postponed the placement in Hong Kong amid growing political unrest in the Asian financial center, Reuters reports citing two sources familiar with the situation.

hinglish Notes via flickr
hinglish Notes via flickr
Although a new listing deadline has not been formally set, Alibaba may hold the placement in Hong Kong in October, seeking to raise $ 10-15 billion when political tensions will ease and market conditions will become favorable again, one source said.

The decision to postpone the deal, originally scheduled for late August, was made at a board meeting prior to the publication of Alibaba reporting last week, the agency’s second interlocutor said.

The delay is due to the lack of financial and political stability in Hong Kong, sources added. Since the beginning of June, mass protests over the extradition bill have been taking place in the city. The unrest has grown into wider pro-democracy demonstrations. Against this background, the Hong Kong stock market last week fell to seven-month lows.

"It would be very unwise to start it now or in the near future," the first source said. 

Meanwhile, Alibaba's placement is a major deal for the Hong Kong Stock Exchange, which lags behind its New York rivals in the annual struggle to become the world's leading listing site.

Alibaba shares are already traded on the New York Stock Exchange, where the e-commerce giant held an IPO in 2014, managing to raise $ 25 billion.

The placement of Alibaba shares on the Hong Kong Exchange became possible after the site management allowed placement of double class shares in 2018.

source: reuters.com