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Why does Alibaba want to go public in Hong Kong?

via:搜狐IT     time:2019/7/1 19:47:16     readed:225

This will be Alibaba's third listing.

In 2007, Alibaba B2B Company listed in Hong Kong. Since its business continued to expand, it is necessary to pack the whole group business after delisting. However, because HKEx does not support Alibaba's proposed ownership structure of "different rights with the same shares", HKEx and Alibaba have lost hands. In 2014, Alibaba Baden's U.S. stock market, with a total amount of $21.8 billion, once became the largest IPO in U.S. stock history.

The Hong Kong Stock Exchange is deeply saddened by the loss of Alibaba. From the Financial Secretary of Hong Kong to the President of the Hong Kong Stock Exchange to the investors in Hong Kong, they have repeatedly expressed their regret for the loss of Alibaba.

In order not to miss out on more new economic companies, HKFE President Li Xiaojia initiated the reform. The controversy over whether "different rights with the same share" can be implemented lasted for three or four years in Hong Kong's financial circle. On April 30 last year, the revised Listing Rules on the main board of the Hong Kong Stock Exchange came into force, and Hong Kong formally opened its doors to companies with different ownership structures.

In January this year, Hong Kong Chief Executive Zheng Yue-e made an invitation to Alibaba at an event. Ma Yun gave the answer: "We will seriously consider the Hong Kong market."

On the issue of returning to HKEx, of course, we should give the final groundwork before Ma Yun leaves office.

Hong Kong's image to the outside world has always been rich and advanced. Since the founding of the People's Republic of China, Hong Kong's real estate industry and financial industry have flourished, and a large number of excellent enterprises and entrepreneurs have emerged.

Hong Kong is still rich, but it is losing its vitality. From 1997 to 2012, Hong Kong's GDP growth rate was only 2.0%, ranking at the end of the four Asian tigers (4.77% in Korea, 4.29% in Singapore and 2.7% in Taiwan).

One of the most important reasons for Hong Kong's gradual loss of vitality is that it has little to do with the biggest economic variables of the 21st century, technology and the Internet. Hong Kong needs new vitality, which stimulates Hong Kong's unusual thirst for technology companies and the Hong Kong Stock Exchange for technology stocks.

Li Xiaojia said that the implementation of "different rights with the same shares" is the biggest change since 1993 and a milestone in the history of the Hong Kong Stock Exchange.

This move immediately stimulated the vitality of the Hong Kong Stock Exchange, and the enthusiasm of mainland technology companies to go public in Hong Kong was unprecedented. On July 12, 2018, eight companies listed on the Hong Kong Stock Exchange and knocked four gongs at the same time. The outside world joked that the gongs of the Hong Kong Stock Exchange were not enough.

At present, there are Tencent in Hong Kong's capital market.milletIf Alibaba can return smoothly, it will be able to strengthen Hong Kong's capital market strength again and enhance Hong Kong's position in the international financial sector.

Compared with the enthusiasm of the Hong Kong Stock Exchange, Alibaba's willingness to return is not so urgent, but in the long run, returning to Hong Kong for listing also has many benefits for Alibaba.

Investors in Hongkong are more familiar with China Internet Corporation. They are probably Taobao users themselves, and Alipay pays their bills in their lives. In the United States or other Western countries, Amazon and credit cards are preferred, and this natural familiarity will enhance capital markets'confidence and preference for Ali.

In addition, from the data point of view, the U.S. capital market for Alibaba is not as good as the Hong Kong Stock Exchange for Tencent. Referring to Bloomberg data, Alibaba's expected P/E ratio fell by 23 times, far below Tencent's 31 times in Hong Kong. In addition, in recent years, the Hong Kong Stock Exchange's strong demand for science and technology stocks and many deep calls for Alibaba, Alibaba's return will surely usher in enthusiastic pursuit.

As China and the United States compete, the Hong Kong Stock Exchange opens its arms to welcome Alibaba, which happens to provide a harbour for Alibaba.

Whether it's ZTE or ZTEHUAWEIAccording to the experience of these two companies in recent years, it can be said that the United States has long been ready to "regulate" the beginning, as long as the timing is right, it will immediately press the start button. For a country that advocates fairness and openness and transparency, fairness and openness are only aimed at its own enterprises. Foreign companies can be treated unfairly at any time.

And this kind of unfair treatment is like a time bomb for Chinese enterprises. The recent blockade of Huawei by the United States has indirectly led to the stagnation of the company's cooperation in the European market. If it continues, its negative impact will be no less than that of Huawei.SamsungOfMobile phoneSpontaneous combustion.

ZTE and Huawei are not yet listed in US stocks, but for Chinese technology companies listed in US stocks, they will obviously face more regulatory risks.

Not long ago, a bipartisan panel of senators, including Republican Senator Marco Rubio and Democratic Senator Bob Menendez, proposed a bill:

Chinese companies listed in the United States must comply with increasing financial regulations, such as providing audit services, or face delisting.

Looking from the international environment, the relationship between China and the United States is extraordinary. Perhaps for a long time, both sides will inevitably have friction. Under such a background, the prospective stocks listed in the United States are likely to be targeted.

Returning to HKEx is back to a safe zone. At the same time, the return also means that Ali can be closer to its main clients and investors.

Last March, foreign media reported that Alibaba was studying the A-share listing plan. Maybe one day, Alibaba will embark on its fourth listing, and listing in Hong Kong stock market will be a good transition.

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