Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

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

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×