Alibaba delays US $15 billion listing in Hong Kong stock exchange during protests
China’s Major e-commerce firm Alibaba has postponed its US $ 15 Billion registering in Hongkong due to increasing political conflict in the financial hub of Asia. Alibaba’s moves are being strictly observed by the business community for signals on the trade-in Chinese controlled region. The date is not confirmed; however, it is expected that Alibaba could initiate Hongkong deal early in October. Alibaba is looking to raise US $ 10-15 billion as soon as market situations become promising and political conflicts ease. Initially it was decided to postpone the deal till late august. It was decided in a board meeting just before the Alibaba’s earnings release in the last week.
Delay is happening due to a lack of political and financial stability in Hong Kong. Increasing violence is causing a disturbance in Hong Kong. Recently, police have used tear gas. More than seven hundred people are arrested, followed by airport shut down. There was a sudden fall in the stock market, which was lowest in the seven months. Sources said that it would not be a wise decision to initiate this deal anytime soon. It would create problems after looking at the present situation. Alibaba has declined to comment on this issue.
This deal would be possibly the biggest deal of the year. It would give Alibaba a monetary boost to continue investing in the technology. Alibaba is looking at this deal as a diversification in the capital markets. Also, sources said that Alibaba is not considering this adjournment as a setback. However, Alibaba’s listing in the Hong Kong stock exchange would be a great deal for Hong Kong as they are lagging behind New York in the annual clash to be the prominent global listings place. Hongkong has relaxed some of its rules to attract overseas technology firms. Because of the present situation in Hong Kong, their stock exchange’s CEO has not revealed any information on the Alibaba listing.