Chinese e-commerce giant, Alibaba Group, is considering a probable second listing in Hong Kong. Thus the world’s largest tech giant is considering to raise $20 billion. Reportedly, the Chinese tech giant is working with financial advisors to bestow the second listing as soon as the end of 2019. As per sources, the primary objective of the company behind the second listing is to expand its funding channels and boost cash in hand. The second listing arrives after five years. Before this, the Chinese e-commerce giant scored a record $25 billion on the New York Stock Exchange, the world’s most massive first-time share sale. Whereas, Alibaba’s success in China is similar to that of Amazon’s in the United States. The Chinese company has gained the market cap of around $400 billion, along with a 13% rise in stocks in the current year. The figures are quite better than rivals.
Nowadays, Hong Kong is becoming a more and more famous destination for public offerings. Recently, China’s largest chipmaker had declared that it would de-register from the NYSE. Now the company is focusing on its stimulating Hong Kong listing. The giant share sale arrives as Chinese companies combat with rising tensions between Beijing and Washington. China has sought to stimulate its existing and future big tech companies to list closer to home. The country also intends to launch a planned technology board in Shanghai, that would be China’s reply to the Nasdaq exchange.
Although, the move arrives as China and the United States engaged in an increasing trade war. It has even impacted Chinese companies. Washington has banned American companies from supplying technology to Huawei, Chinese telecom and smartphone giant. On the other hand, the U.S. government suspects Huawei has close ties with the Chinese military, so it could allow Beijing to obtain crucial data from global networks that use Huawei equipment.
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