What is the impact of Alibaba's listing in Hong Kong on its listing in the United States? Why is Alibaba listed in Hong Kong for the second time?

After Alibaba went public in Hong Kong, many people were talking about it. Jack Ma obviously has no shortage of money, so why did he choose to go public in Hong Kong for the second time? What is his plan? What impact will the Hong Kong stock listing have on Alibaba's US listing? Friends who are more concerned about Alibaba can read the detailed introduction provided by this site.

What impact will Alibaba's Hong Kong listing have on its U.S. listing?

1. Alibaba is listed in Hong Kong. Mainland investors can also buy and sell Alibaba's shares through the Hong Kong Stock Exchange, so that everyone has the opportunity to share in Alibaba's growth. For Alibaba itself, it can also contribute to expanding its market value. Since the domestic valuation of the new economy is still high, there has been no opportunity. It should be said that the valuation of Alibaba's A shares may be higher than that abroad. Alibaba's market value is likely to exceed that of the global leader. Based on the above factors, we know that Alibaba's return is a major positive for the Hong Kong stock market.

2. Compared with the United States, Hong Kong society knows more about Alibaba, and with the same culture and ethnicity, the story it tells is easier to understand, and it can give a relatively good valuation (Tencent Holdings has already risen to a sky-high price);

3. The US market is more familiar with technology stocks, with giants such as Google, Microsoft, Apple, and Amazon already existing. If Alibaba is genuine, it can also give a very good valuation;

Reasons for Alibaba's second listing in Hong Kong

Alibaba is going to be listed in Hong Kong for the second time, which was a promise made a long time ago. In 2013, when Alibaba Group was considering an overall listing, the preferred listing location was Hong Kong. However, the Hong Kong Stock Exchange at that time believed that Alibaba's partnership system belonged to "same shares, different rights". Alibaba had to choose to go public on the New York Stock Exchange, but this also created the largest initial public offering record for US stocks. Jack Ma once said: "As long as conditions permit, we will come back, and this idea has not changed." In April 2018, the Hong Kong Stock Exchange carried out "the most significant listing mechanism reform in the Hong Kong market in the past 25 years" and no longer entangled in "same shares, different rights". Then there were rumors that Alibaba would return to Hong Kong, until now the shoe has dropped.

Another important reason for listing in Hong Kong is Alibaba’s globalization strategy. The Southeast Asian and South Asian markets are the battlefields for the next stage of globalization. Nearly half of the world’s population is here, and Alibaba has already made plans for this: Lazada, PayTM… Listing in Hong Kong will become the rocket fuel that drives Alibaba’s globalization.

How to view Alibaba's listing in Hong Kong

Alibaba's listing in Hong Kong is a huge event. You may not be able to see it now, but you will feel it in a few years.

First of all, from Alibaba's own perspective, in order to prevent the US president or others from going crazy, they may restrict US funds from buying or say they will delist Chinese companies. Although they are just talking about it now, what if they really go crazy and do it? It's better to prepare for a rainy day.

Secondly, for Hong Kong, have you noticed that the Hong Kong Stock Exchange has been very active recently, including a series of actions to acquire or attempt to acquire other exchanges in the world, including the London Stock Exchange, which is really brilliant. Letting Alibaba come here has increased its competitive advantage. The Hong Kong Stock Exchange's financing capabilities, radiation range, various conveniences, sense of security, and importance are not the best in the world now, but at least they are at the forefront. The IPO of Budweiser recently proved this point. Let Saudi Aramco come here. In the future, Hong Kong will not only be a place for Hong Kong people to trade stocks, nor will it only be a financial channel for China to understand the world, but it will become a node connecting the economies of countries around the world. Awesome!

I believe that the national will is also very strong for this listing. Alibaba and Tencent, the two big chess pieces of our great China, are no less important than Google. Standing tall in the Pearl of the Orient, they are a good billboard in themselves. They show China's strength and development to the outside world. The role of dominating Hong Kong's economy, from British and American capital to Chinese capital, then to Chinese capital, then to private enterprises among Chinese capital, and then to high-tech enterprises among private enterprises among Chinese capital, is a good transition. Let Swire and Cheung Kong die. In the future, Hong Kong's economy and the weight of the Hang Seng Index will be carried by the two Chinese giants. This is the most critical step for China to govern Hong Kong.

At this critical moment, Alibaba's listing in Hong Kong is crucial to Alibaba, Hong Kong and China's overall development. This listing is destined to become a landmark event, a milestone and a turning point.