Time back to 5 years ago, on September 15, 2014, after Ali submitted the IPO application on the NYSE, he came to the Hong Kong roadshow and faced nearly 500 investors. Ma Yun said, "Some people say that Hong Kong lost Alibaba. This opportunity, I personally think that Alibaba missed Hong Kong."
Lu Xiaodong, general manager of Hangzhou Liyuan Venture Capital Co., Ltd. recalled that when Alibaba was forced to go public on the New York Stock Exchange.
Today, five years later, changes have taken place. "One of Hong Kong's policy directions is to attract China's large new economic companies as much as possible, and to make Hong Kong a major listing place." Du Xianjie, investment director of Duke Capital Management Co., Ltd., told Economic Observer.
Most notably, Li Xiaojia, CEO of the Hong Kong Stock Exchange, frequently stated his appearance in a number of public occasions this year: Welcome Ali to return to Hong Kong for a second listing.
Return to Hong Kong for secondary listing
Since April this year, the news of Ali’s second listing in Hong Kong has gone away. The Alibaba Group responded to many inquiries from reporters and responded by “no comment”.
A person in the M&A investment field told reporters that his Hong Kong office lawyer is conducting a series of technical operations for Ali to complete the second listing.
The “one-in-one” split-share plan adopted at the Ali Shareholders' Meeting was seen as paving the way for the listing of Hong Kong stocks. Zhou Xiangdong, founder of iterative capital, believes that the stock split can effectively lower the threshold for investment by small and medium investors in the Hong Kong stock market. Ali's return will attract more investors' attention.
Liang Guanye, executive director of Haitong International Wealth Management Investment Strategy, in the Hong Kong market, andMilletDu Xian, the investment director of Duke Capital, who invested in Ping An’s doctors and other companies when they went to Hong Kong for listing, said in an interview with the Economic Observer that the logic of Ali’s stock split is to further increase liquidity, one hundred thousand or one thousand in one hand. In the Hong Kong stock market, the stock split can reduce the price of a single share capital. The cost of buying one-handed investors in this market is not too high, and the threshold for investors to enter daily is much lower.
In addition, the second listing of returning to Hong Kong, for Ali, is an additional listed exchange, and can raise another fund. "Now it is rumored that Ali has raised more than 10 billion US dollars." Du Xianjie believes that Ali's return to Hong Kong is bound to attract more Chinese investors.
For the "one-off eight" stock split plan adopted at the Ali Shareholders' Meeting, Du Xianjie believes that it is to solve some technical problems for the listing in Hong Kong.
As of press time, Ali's share price is nearly 173 US dollars / share, equivalent to Hong Kong dollars over 1,000 yuan, "If the absolute price of 1000 Hong Kong dollars, the share capital is too high." Du Xianjie said that the current highest share price of Hong Kong stocks is hundreds of Then, Ali's price after splitting the share capital into one-eighth is relatively closer to the Hong Kong stock market. "This is a step forward for Ali to go public for the Hong Kong stock market."
Liang Guanye believes that this stock split plan has little impact on the overall value of Ali, but the share capital is split into eight, and the overall market value is the same as that of US stocks. He expects that the changes brought by Ali after returning to Hong Kong stocks will cause more domestic institutions or retail investors to avoid the trouble of opening an account in the United States to buy stocks. It will also greatly help the development of Ali, "increasing investor confidence and Participation will be a positive for the company's shareholder distribution."
Zhou Xiangdong, who has been shorting the stock company in the US stock market, has not made any preparations for the new market in the recent high market. He is more adept at predicting the next like Weilai Automobile and Ruixing.coffeeSuch a sign of the decline of US-listed companies, talking about Ali, "I am most optimistic about it in the entire Internet industry."
Along with the frequent actions of Ali's return to Hong Kong for the second time, there are some voices in the outside world. Ali went back to the market in Hong Kong and went to the US stock market to grow into a giant with a market value of 100 billion. Now it is nothing more than a wave of money. "Ali's return to Hong Kong stocks is not deliberate," Lu Xiaodong said. He believes that Ali, who was listed on the Hong Kong stock market in the past, and Ali, who is now in the market, have already had a very different connotation.
In 2007, Ali's B2B company first landed on the Hong Kong Stock Exchange. "This business is relatively early and faster in Ali development," Lu Xiaodong told reporters. After the Ariel, he also derived the C2C business Taobao. The network, as well as the business of Alipay and rookie network covering various aspects such as finance and logistics, are not in the main body of listing.
As Ali's ecology grows stronger, "the size of the Hong Kong stock market is probably a fraction of the size of the group, and it is a small one." Lu Xiaodong described the current Ali, "has already It is a huge thing."
However, in essence, because Ali has implemented a partnership system with different rights in the same stock, it has formed a corporate decision-making structure model in which the board of directors only leads the company, and the partner absolutely leads the board of directors. However, the HKEx insists on the same shares and refuses. Its listing application.
On April 30, 2018, Hong Kong officially launched a new listing rule, and accepted companies with different ownership structures in the same stock to go to Hong Kong for listing, or such companies to come to Hong Kong for secondary listing. Since then, Hong Kong stocks have ushered in new economic companies like Xiaomi and Meituan, and have become representatives of companies with different rights.
Alibaba's strategic investment baby tree was also listed on the Hong Kong Stock Exchange in 2018. Its founder and CEO, Wang Huainan, talked about Ali in an interview with the Economic Observer. “A general company withdraws from the market, and it will give a relatively high price. At least for investors, shareholders will approve the delisting.” Wang Huainan said that when Ali first listed in Hong Kong, the market value was not large and continued to break. Finally, taking into account the interests of investors, but delisting at the issue price, the special thing is that this is definitely not the case in the past, "investors not only did not make money, but also lost the opportunity cost."
In 2014, Ali was listed on the NYSE, creating the largest IPO ever at the time with a financing of up to $25 billion. The closing market value of the day was $231.4 billion, which directly surpassed Face-book and became the second largest Internet company in the world after Google’s market value.
As time goes by, Ali's current market value is close to 450 billion US dollars, equivalent to 3.5 trillion Hong Kong dollars, 2.8 trillion yuan. "It's already full of wings." In Wang Huainan's view, "it's going to Hong Kong at this time."
Ali and Tencent will fight against each other?
In Zhou Xiangdong's view, Ali's business is more stable, and the management's ability is far better than other companies. The most worth mentioning is that "the Internet, especially the consumer Internet, is an era of strong people." In the future consumer Internet, the Tencent Department, represented by Ali and represented by Ali, will play very well.
If Ali returns to Hong Kong stocks this year, Zhou Xiangdong expects that it will launch a strong confrontation with Tencent, the former "Hong Kong Stock Exchange". "Tencent is a straggler." In Zhou Xiangdong's analysis, although Tencent has invested in a bunch of companies, its own integration ability is worse than that of Ali, so the business development and competitiveness in the capital market will not be said. Yu.
Ali’s investment map is both clear and synergistic. “Ali is a group army.” Zhou Xiangdong said that the stragglers look great, but likeJingdongIt is almost impossible to cooperate with Tencent in the Tencent system. Tencent's competitiveness is relatively weak.
Ali holds about 10% of the baby tree, and Baby Tree and Ali have strong links in the e-commerce business. Unlike Ali, which invests in other companies, “Frankly speaking, from the perspective of thoroughly integrating the two systems on the underlying architecture, Baby Tree and Ali are the strongest in terms of seamless links.” Wang Huainan welcomes this huge Deep strategic partners can come to the Hong Kong stock market like baby trees. However, whether this happened or not, he said, "The impact on our strategy and execution is not great."
Wang Huainan mentioned more than once, "I hope to see more companies like Ali in the past, and use the new economic thinking to go to the capital market." This is not a one-step thing. In his view, since the beginning of last year, the reform of Hong Kong stocks has entered the fast lane. However, after several years of reform and opening up, the regulatory agencies are becoming more mature, and they can truly become a not only highly inclusive, but also active in trading. Investors have a heart full of markets.
Du Xianjie believes that the Sino-US game brings more uncertainty to the capital market, including the choice of the place where the company is listed. Not only is Ali paying attention, but in the future, there will be more large US stocks that will consider “going home”.
In addition to Ali, Netease's Chairman and CEO Ding Lei was asked during the two sessions this year whether he would like to return to the A-share listing issue. "We will certainly consider it." SMIC has also withdrawn from the US stock market. After the withdrawal of the US stocks from the US stock market, the mobile game technology is applying for IPOs twice in Hong Kong stocks.
Once the Hong Kong Stock Exchange missed the giants like Ali, Hong Kong also missed the "one Internet age." In the view of Lu Xiaodong, the loss of Ali not only made the Hong Kong exchanges' international status decline, but also made Hong Kong pay more for it.
Since the companies issued by the AB shares in the United States have precedents and accepted the "shares with different rights", the market is highly tolerant, and many companies that have hit the wall in Hong Kong like to go public. In addition to Ali, Internet technology companies like Baidu, Netease, Sina, etc., even like learning and thinking, good future, New Oriental, such as k12educationCompanies have chosen to go public in the US.
"The outstanding company that represents China's future vitality, 'half of the country' is not listed in China, which is actually unfavorable for our country itself." Lu Xiaodong bluntly, Wall Street has harvested a large number of Chinese Internet companies' listing dividends, let the Hong Kong Stock Exchange Really "pain" has arrived, only to know that it is necessary to be open.
Lu Xiaodong calculated the account for the reporter: Today, Ali’s trading volume in the US stock market is close to 10 billion US dollars a day. Assuming that it was listed on the Hong Kong Stock Exchange, the stamp duty of the Hong Kong Stock Exchange is 1‰, and both buyers and sellers will charge it. The daily trading volume of the stock is multiplied by 2‰, and the stamp duty for one day is 20 million US dollars. "If we maintain such a large transaction volume on the Hong Kong Stock Exchange, it means that Chinese people will lose 20 million US dollars in stamp duty every day."
Lu Xiaodong added, "This is not counted in the listing of Hong Kong stocks or A-shares, so many commissions brought by securities dealers, and the flow of funds brought by a large number of institutional investors in Hong Kong or mainland China..."
At present, China's strong push for science and technology is regarded by Lu Xiaodong as an important measure in China's transformation of the investment market. He believes that the ultimate goal is to hope that China will have more "in the future of Ali" and "the future of Tencent." "Flowing results in China or at least in Hong Kong."