There is no doubt that the Hong Kong stock market changed its value on the 26th
On November 26, Alibaba was officially listed on the Hong Kong stock market. The stock price opened higher and higher. As of midday, the stock price was reported at 188.1 Hong Kong dollars, an increase of 6.87%. The total market value was 40.29 billion Hong Kong dollars. It is approximately HK $ 322.1 billion, a difference of more than HK $ 800 billion. Amid the continued turmoil in Hong Kong, Alibaba’s IPO is going through storms, which shows how tough the Hong Kong stock market is. The successful listing of Alibaba is believed to help strengthen the charm of Hong Kong stocks. The return of Alibaba to the Hong Kong stock market is self-evident and the political significance is self-evident, underscoring the continuing turmoil, and Hong Kong’s position as a global financial center cannot be shaken.
Hong Kong’s financial position is solid
Alibaba announced on the Hong Kong Stock Exchange on the morning of November 25 that the Hong Kong IPO was oversubscribed for the retail sector and the offering size for the retail sector increased from 12.5 million shares to 50 million shares. The offer price of 500 million shares is set at HK $ 176, and net funding is expected to be approximately HK $ 87.6 billion. Listed and traded on November 26, Alibaba listing will definitely bring huge transactions to Hong Kong stocks. Alibaba is part of the public offering. It has been over-purchased by more than 40 times, frozen capital of more than 96 billion yuan, and more than 200,000 retail investors participated in public subscription. As long as the relevant shares are released, Hong Kong stock trading can be greatly increased.
In the highly volatile and sensitive period of Hong Kong, Alibaba’s successful listing in Hong Kong shows that, in addition to the rapid development of the Shanghai and Shenzhen Stock Exchanges, national regulators have also attached great importance to Hong Kong’s status as the first free port of China’s finance. Alibaba’s listing in Hong Kong will be enough to push Hong Kong’s total listed financing so far this year to exceed the Nasdaq in New York, helping the Hong Kong Stock Exchange to defend the world’s “number one listing destination”.
Alibaba first established a listing in Hong Kong and made a lot of efforts to this end. However, due to the problem of “different rights in the same shares,” it encountered obstacles.
Alibaba was listed in the United States. At that time, public opinion in Hong Kong was constantly questioning. As an outstanding e-commerce company emerged after the reform and opening up of the Chinese mainland, it cannot be listed in Hong Kong because of the unique ownership structure. This is a loss for both Ali and Hong Kong stocks. At the same time, in order to attract high-quality resources in the Mainland, Hong Kong has made great efforts to reform. Last year, through amendments to relevant regulations, it opened the door for companies with the same shares and different rights to list in Hong Kong. Prior to Ali, two companies, Xiaomi and Meituan, which had the same equity structure as Ali, were successfully listed in Hong Kong. Therefore, Alibaba has also started an ambitious plan to return to the Hong Kong stock market.
In these 5 months, the storm of revisions has not been calm, which has negatively affected Hong Kong’s economy. This momentum naturally affects the Hong Kong stock market. Facing this change, Ali’s launch of a new round of IPO in Hong Kong at this moment shows the company’s firm confidence in Hong Kong and its support for the SAR government. It is a huge support for the Hong Kong stocks that are facing tremendous pressure. At NASDAQ, Ali contributed a huge market value to U.S. stocks. At its peak, it exceeded 500 billion U.S. dollars, bringing huge returns to the world.
New upsurge of domestic companies listing in Hong Kong
Ali was listed on November 26, and the stock market was listed simultaneously. The completion of Alibaba’s IPO and the Hong Kong Stock Exchange will inevitably become the world’s largest IPO market this year. The listing of Alibaba in Hong Kong will not only boost the Hong Kong stock market.
Since the second half of this year, the Hong Kong stock IPO market has been in a low tide. In July and August, only 17 new shares were listed, a decrease of nearly 60% compared with the same period in 2018. With the successful listing of Budweiser Asia Pacific at the end of September, the Hong Kong stock IPO market has recovered. Looking back at the top ten new shares of the Hong Kong stock market this year, including Alibaba, 5 companies were listed after September 30. Not only has the number gradually recovered, but the performance of Hong Kong stocks on the first day of listing has also become increasingly brave. Since October, many new Hong Kong stocks closed up more than 20% on the first day of listing. According to Wind data, based on the total initial fundraising, as of November 18, the top 3 IPO funds raised by Hong Kong stocks since the beginning of this year are Alibaba, Budweiser Asia Pacific and Asia Pacific Logistics Real Estate Leader ESR. The first two companies’ total initial fundraising is approximately HK $ 45.075 billion and HK $ 12.629 billion.
At the same time, among the top ten new shares in the IPO fundraising of Hong Kong stocks this year, there are many well-known mainland companies, including Shenwan Hongyuan, Hansen Pharmaceutical, Taobo, and China Feihe.
Due to the large scale of the overall offering and other reasons, the subscription ratio of the public offering of Hong Kong stocks with high fundraising in the past was not high. However, Alibaba’s Hong Kong public offering subscription has been hot, freezing funds of about 100 billion Hong Kong dollars, this year’s “Frozen King”. Alibaba’s public offering was oversubscribed by a factor of 40 in the end. It should be because Ali’s international placement was quickly subscribed in full, and some institutions that originally wanted to participate in the international placement switched to the public offering. This listing will be enough to push Hong Kong’s total listed financing so far this year to exceed the Nasdaq in New York, which currently has a total financing of about US $ 32.5 billion.
The future of Hong Kong stocks is more worth looking forward to
The 26th was a new milestone for Hong Kong stocks. Perhaps Ali’s absorption of money was too great. Hong Kong stocks opened higher and lowered on the 26th. The Hang Seng Index closed at 26939.209 points, down 53.830 points or 0.200%. In general, the performance of Hong Kong stocks is stable, and the Hang Seng Index continues to struggle around the 27,000-point mark.
The high-level confidence of the Hong Kong Stock Exchange has obviously been boosted, emphasizing that Ali can come back when Hong Kong is very difficult, showing how tough and promising the market is. The senior officials of the Hong Kong Stock Exchange made it clear that all companies that should be listed in Hong Kong should come. Ali has returned. There is no reason not to believe that others will not return. Hong Kong is always waiting for everyone.
The market shows that Ali’s performance was mild on the first day of listing, and there is still considerable room for increase in the follow-up. The price gap between Hong Kong and Alibaba stocks remains huge. Alibaba closed up 1.96% on the New York Stock Exchange on the 25th, to $ 190.44, with the latest market value of $ 4972 billion. The stock price of 190.44 US dollars is converted at the exchange