Beautiful Virgin Islands

Tuesday, Sep 16, 2025

Why Alibaba is betting on Hong Kong

Political protests and petrol bombs aren't the ideal backdrop for a top global company looking to raise billions of dollars from investors.

But that's exactly what Alibaba is doing.

The Chinese e-commerce giant is preparing to raise at least $11bn (£8.5bn) by listing its shares on the Hong Kong stock exchange next week, in what could be the year's biggest public share sale.

"Hong Kong is one of the world's most important financial centers," reads a letter to potential investors from Alibaba's chairman, Daniel Zhang.

"During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright."

That's a pretty optimistic assessment given the violence on university campuses and the streets of Hong Kong this week alone.

So why now? And what does the multi-billion dollar listing tell us about investor confidence in Hong Kong?

Sources close to the company say political unrest in Hong Kong wasn't a factor in whether to go ahead with the listing, and the social upheaval doesn't appear to have affected appetite for Alibaba's shares.

The share offer closed ahead of schedule, which means that investors snapped up the stock at a faster pace than expected.

But some say the timing of the listing is questionable.

Max Bondurri, founder of SGMC Capital, says Alibaba could have raised more funds if it had waited.

"From a purely economic point of view they could have waited till next year to list, at a time when some of the unrest may perhaps have died down."

However, he believes the decision to list now was motivated also by political, rather than purely financial, concerns."

The suggestion is that Beijing can influence decision-making at Chinese companies to serve its political interests.

"It's an attempt to take the negative headlines away from what's going on in the streets and universities," he says.

"It will help to remind international investors that Hong Kong is still open for business."

Still, the protests have had an impact. The listing event itself is likely to be low-key and low-profile.

It is unclear whether Jack Ma, the exuberant former chairman whose name has become synonymous with the e-commerce giant, will attend. It's also not clear if Mr Zhang will be there.

This raises questions about the level of concern the firm might have about potential violence outside the exchange or near its executives.

Investors won't queue up outside the exchange or banks to get their hands on paper receipts because Alibaba has decided to go paperless for this listing - the first time a firm has done so in Hong Kong. Some have said this is to avoid the risk of protestors attacking investors who might be out on the streets.


A boost for Hong Kong?

Alibaba's listing is likely to distract from the violence playing out on the streets, for a few days at least.

It may also reassure investors that if a giant such as Alibaba is willing to take the risk and list its shares in Hong Kong, the city's reputation as a financial hub must still be intact.

Weijian Shan, the man often described as Asia's private equity "king", told me the Hong Kong Stock Exchange was the only "bright spot" in an economy currently beset by violent turmoil and recession.

A quick guide to the Hong Kong protests

Hong Kong in first recession for a decade

How protests pushed HK's economy to the brink

More than two hundred Chinese companies are listed on the Hong Kong Stock Exchange, making up almost half of the exchange's value.

Their value is unlikely to be affected by the day-to-day protests, although negative sentiment from the political crisis no doubt filters through to the stock market in moments of heightened tension.

Still, concerns over Hong Kong's reputation should be taken seriously - and it's not just because of the unrest.

Increasingly, there's a perception in the business community that Beijing calls the shots in Hong Kong.

This week, Chinese state media came out strongly against a decision by Hong Kong's courts that the anti-mask ban was unconstitutional, raising fears that Beijing will wade in even further.

This potentially threatens the independence of Hong Kong's judiciary, the sole reason international companies come to the city and list there.

Hong Kong's courts are - for now at least - still independent from China's. The more that fades, the more Hong Kong's future as an international financial centre is diminished - whether companies like Alibaba choose to list there or not.


Back to its roots

Against a complicated political backdrop, Alibaba has long expressed a desire to bring the company "home" to Hong Kong.

It had hoped to list its shares there in 2014, when the firm first went public. But the city's listing rules at the time meant it made more sense for the company to float in New York.

An investor in Alibaba's US shares told me that the Hong Kong listing was a "genius move", because it will allow mainland Chinese investors to buy shares in a company they know well.

"Expect the shares to pop on the first day of trade," says the investor, who didn't want to be named.

"Mainland Chinese investors will want to show their support for a company they see as one of their own."

Even though Alibaba has no shortage of cash, the Hong Kong listing could help to raise money for future challenges, especially in the US.

"Because of the US-China trade war, there's more scrutiny of Chinese companies listed in the US," he says.

"If Alibaba raises this cash in Hong Kong, it allows them to potentially delist their shares in the US if they run into any trouble with US authorities in the future over any potential national security concerns."

For now, Alibaba says there are no plans to delist its shares in the US.

"The New York Stock Exchange is the primary listing venue" an Alibaba spokesperson told me. "We will continue to be listed and traded on the New York Stock Exchange."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
×