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The question is how long?
Update ...Alibaba's stock drops 4.4% premarket, after reports Ant Group IPO postponed
https://www.wsj.com/articles/ant-group-ipo-postponed-by-shanghai-stock-exchange-11604409597
Jack Ma Gets Summoned By Chinese Regulators Ahead Of Ant Group's IPO
11:21pm ET 11/2/2020 Benzinga
Mentioned in article
BABA
Jack Ma, the co-founder of the Ant Group and Alibaba Group Holding Ltd (NYSE: BABA), has been summoned by China's central bank and three other regulators for questioning, the Financial Times reported Monday.
What Happened: The People's Bank of China, China Banking and Insurance Regulatory Commission, the Securities Regulatory Commission, and the State Administration of Foreign exchange have also posed questions to Ant Group Chairman Eric Jing and CEO Simon Hu along with Ma, according to FT.
A Chinese word, "yuetan," reportedly used by the regulators' to describe the interview suggests the executives may have been reprimanded.
An Ant Group spokesperson acknowledged that Ma and other executives had met the regulators, as per FT.
'Ant Group will implement the meeting opinions in depth, and continue to follow the guidelines,' the spokesperson said.
Why It Matters: Ma had described the Ant initial public offering as the 'largest in human history' at last month's Bund Summit in Shanghai. The Alibaba co-founder had also made comments that were critical of the regulators and the country's bankers at the same Shanghai event, noted FT.
The questioning of Ma comes ahead of Thursday's listing of Ant's shares on public markets. Last week, Ant's bankers reportedly triggered a greenshoe option, increasing their offers after retail bids exceeded the value of the shares put on sale by more than 870 times â?? taking the financial services company's valuation past $316 billion.
Price Action: Alibaba Group shares closed nearly 2.1% higher at $310.84 on Monday and gained 0.63% in the after-hours session.
Ant's record-breaking IPO attracts $3 trillion in retail-investor bids
Ben Winck
Oct. 30, 2020, 01:39 PM
https://markets.businessinsider.com/news/stocks/ant-group-record-ipo-attracts-trillions-retail-investor-bids-alibaba-2020-10-1029746289#
Ant Speeds Ahead with Record IPO After Investor Orders Pour In
9:02am ET 10/28/2020 Dow Jones
Mentioned in article
BABA
By Jing Yang and Joanne Chiu
Ant Group Co. will stop collecting orders from institutional buyers for the Hong Kong leg of its record initial public offering on Wednesday, a day ahead of schedule, after meeting strong demand from investors, according to people familiar with the matter.
The financial-technology behemoth, which is part-owned by Alibaba Group Holding Ltd., is set to raise at least $34.4 billion through dual listings in Shanghai and Hong Kong, selling about $17.2 billion of stock in each market.
The deal caps a busy year for China's equity capital markets and reflects Chinese companies' increasing pivot toward home for primary or secondary listings amid heightened tensions with the U.S.
The portion of the Hong Kong deal reserved for large investors, which will be at least 90% of the total, has been heavily oversubscribed, the people said. Order books were closed at 5 p.m. local time in Hong Kong. Investors in Europe and the U.S. could submit orders till 5 p.m. local time.
Haiyan Li-Labbé, a fund manager with France's Carmignac Gestion SA, which managed EUR34 billion as of the end of September, said the firm is very eager to be a long-term investor in Ant. "Ant is an interesting opportunity among fintech companies world-wide," she said.
Investors have poured funds into Hong Kong as they scrambled for a slice of this and other share deals, forcing the city's de facto central bank to intervene repeatedly to keep the local currency stable. The Hong Kong Monetary Authority sold $600 million of Hong Kong dollars on Wednesday to defend the territory's peg to the U.S. dollar. Since the start of September it has intervened more than 40 times, spending around $33 billion.
Buoyed by Ant's bumper IPO, Alibaba's stock has hit all-time highs, closing at $317.14 apiece on Tuesday in New York and HK$307.40 on Wednesday in Hong Kong. Both prices are record closing highs.
While IPOs in Shanghai and Shenzhen typically take 12 to 24 months to complete, Ant has moved much more quickly. It said on July 20 it planned to go public, lodged a formal application about one month later, and its shares will start trading on Nov. 5.
In the process, the company has skipped a step from a typical Hong Kong IPO, which would usually start with a price range. Instead, Ant fixed the price before taking orders.
Ant set prices for its shares late Monday and opened the Hong Kong order book that evening. Some investors were informed the next morning the book-building process, already short by typical IPO standards, would be cut short by one day, these investors said.
Ant is also taking orders from individual investors in Hong Kong till Friday. Dennis Wu, senior partner at Futu Securities, a Chinese online brokerage, said his firm had received a record number of orders from individual investors seeking to buy Ant stock.
In Shanghai, long-term strategic investors, from Chinese state pension schemes to Singapore's GIC, took up 80% of the offering. That is an unprecedented portion for the fledgling Science and Technology Innovation Board, a Nasdaq-style board that is also known as the STAR Market. The remaining 20% was 284 times oversubscribed, a filing showed on Monday.
Ant could ultimately raise a maximum of about $5.2 billion more, if underwriters exercise their option to purchase up to 15% more shares in an arrangement known as a greenshoe.
The blockbuster IPO could yield a big payday for an army of investment banks: in Hong Kong, underwriters could collect up to 1% in fees, or the equivalent of about $198 million, according to a filing.
The Hong Kong share sale is being led by Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, and China International Capital Corp. No fee details are available yet for the Shanghai leg, which is being led by CICC and China Securities Co.
Separately on Wednesday, New Oriental Education & Technology Group Inc., one of China's largest private education companies, said it would join the list of U.S.-traded Chinese groups seeking a secondary listing in Hong Kong. It aims to raise up to $1.54 billion.
--Xie Yu and Stella Yifan Xie contributed to this article.
(END) Dow Jones Newswires
October 28, 2020 09:02 ET (13:02 GMT)
Any comments welcomed....
US and China: The Decoupling Accelerates
Geopolitical tensions are pushing technology companies to revisit their global strategies.
By Anne Hoecker, Shu Li and Jue Wang
October 14, 2020 11 min read
https://www.bain.com/insights/us-china-decoupling-tech-report-2020/?gclid=EAIaIQobChMIoPfdybnU7AIVAtvACh3u_QoWEAAYASAAEgJrGfD_BwE
The company, the parent of the Alipay mobile payment service, priced its shares around $10.30 apiece, according to documents released on Monday by stock exchanges in the two cities. At that price, the company would be worth around $310 billion, a market value comparable to that of JPMorgan Chase and more than that of many other global banks.
https://www.nytimes.com/2020/10/26/technology/ant-group-ipo-valuation.html
Alibaba Group Holding (BABA) birthed fintech giant Ant Group, which is currently the most valuable start-up and is expected to raise as much as $35 billion in its coming public offerings in Hong Kong and Shanghai. Alibaba has a 50% market share in the Chinese cloud-computing market, which is much earlier in its development than in the U.S., and it is also building a health-care ecosystem with Alibaba Health.
"It's growing faster than Amazon, has a larger addressable market, and is trading at a discount to Amazon," says McClone. Alibaba's sales grew 30%, and its net income growth was more than twice that in the last fiscal year, compared with 20% sales growth for Amazon and 15% profit growth. Yet, Alibaba trades at 28 times forward earnings, compared with Amazon's 76 times.
Multiple digital businesses rolled up in one is popular elsewhere in emerging markets, creating opportunity even in countries with less attractive economic backdrops. India's Reliance Industries (RIL.India) has transformed from an oil and gas conglomerate into a mix of the Chinese versions of Verizon, Facebook, and Amazon, attracting U.S. internet companies that want to push into India. Those partnerships have given Reliance an infusion of capital to reduce debt it accumulated to revamp its business.
At 26 times forward earnings, the stock has seen some benefit from this transformation, but McClone doesn't see the stock as expensive when considering the longer-term growth prospects for its early-stage omnichannel retail and digital-services business. Plus, Reliance's energy unit still makes up two-thirds of the business -- and this cash cow is being transformed into an integrated oil and chemical company that should reduce its earnings volatility in difficult economic conditions and ultimately improve refining margins.
"The market has been behind this story because it's been so dramatic. It's like being behind on Amazon and Alibaba. It's tough to value without a long-term view," says McClone of Reliance, one of the William Blair fund's larger positions.
ASIA MARKETS
Asia-Pacific stocks higher as China reports third-quarter GDP jump; Alibaba shares in Hong Kong rise
PUBLISHED SUN, OCT 18 20207:36 PM EDTUPDATED 22 MIN AGO
Eustance Huang
@EUSTANCEHUANG
KEY POINTS
China’s third-quarter GDP grew 4.9% as compared to a year ago, according to data released Monday by the country’s National Bureau of Statistics.
Japan’s exports fell 4.9% as compared to a year earlier in September, according to trade statistics released by the country’s Ministry of Finance on Monday.
SINGAPORE — Stocks in Asia-Pacific rose in Monday morning trade, as investors reacted to the release of China’s GDP data.
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Mainland Chinese stocks were higher in morning trade, with the Shanghai composite up 0.67% while the Shenzhen component gained 0.517%.
China’s third-quarter GDP grew 4.9% as compared to a year ago, according to data released Monday by the country’s National Bureau of Statistics. That compared against expectations by Chinese economists of 5.2% GDP growth in the third quarter, according to an average of estimates compiled by Wind Information, a financial information database.
Meanwhile, retail sales in China rose 3.3% in September from a year earlier.
Asia-Pacific markets rise
Hong Kong’s Hang Seng index jumped 1.23% in morning trade, with shares of HSBC listed in the city gaining more than 2.5%.
Shares of Alibaba in Hong Kong rose more than 1%. The Chinese tech giant’s financial technology affiliate Ant Group has received approval from the China Securities Regulatory Commission for the Hong Kong leg of its anticipated listing, a source told CNBC.
Meanwhile, Sun Art Retail Group’s stock soared about 17% after Alibaba announced it agreed to acquire controlling stakes in the firm.
In Japan, the Nikkei 225 rose 1.1% while the Topix index added 1.33%.
Japan’s exports fell 4.9% as compared to a year earlier in September, according to trade statistics released by the country’s Ministry of Finance on Monday.
South Korea’s Kospi also advanced 0.82%.
Meanwhile, shares in Australia rose, with the S&P/ASX 200 up about 1.1%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.76% high
Yea it was 5 to 1....
Pre market ouch.
Great comments, it’s nice to hear opinions.
Do you still feel this way?
U.S. State Department files to blacklist Ant Group - Reuters
Oct. 14, 2020 2:29 PM ETAlibaba Group Holding Limited (BABA)By: Brandy Betz, SA News Editor60 Comments
Reuters sources say that he U.S. State Department has filed an application to put Ant Group on the trade blacklist.
The sources weren't clear on when the U.S. government would make a decision about whether to put the company on the Entity List.
The fintech giant is currently seeking a record $35B in dual IPOs in Shanghai and Hong Kong.
This is a breaking news. Post will update with more information when it becomes available.
Retired Alibaba chairman Jack Ma is the controlling shareholder of Ant Group and Alibaba (NYSE:BABA) holds a non-controlling stake.
Alibaba shares are currently down 1% to $305.64.
Alibaba Stock Hits Record
5:46am ET 10/9/2020 Dow Jones
Mentioned in article
BABATCEHY
By Chong Koh Ping
Alibaba Group Holding Ltd.'s stock has hit a record high, as investor confidence builds that the coronavirus pandemic has accelerated China's rapid embrace of online commerce, and as its financial affiliate Ant Group Inc. prepares to go public.
The recent rally has lifted Alibaba's market value above $800 billion, cementing its position as one of the world's most valuable technology companies and opening a gap between it and Tencent Holdings Ltd., China's other dominant tech group.
Its New York-traded American depositary receipts closed Thursday at a record $300.54. Those shares have jumped 42% this year, according to FactSet.
DBS Bank analyst Tam Tsz Wang said Alibaba's shares were sluggish earlier this year when movement in much of China was severely restricted, and as it struggled to fulfill a surge in demand for goods bought online.
Still, the disruption helped Alibaba grow in smaller cities and in home delivery of everyday items such as fresh fruit and vegetables, he said. "We are starting to see some positive results in the third and fourth quarter due to the positive structural change that has happened," Mr. Tam said.
In contrast, Mr. Tam said that while Tencent benefited immediately from the lockdown, investors now expect growth in its games business to moderate from the third quarter onward as people return to work and have less time to spend on gaming.
Carmen Lee, head of OCBC Investment Research, said the impending listing of Ant, in which Alibaba holds a 33% equity stake, had helped it outperform Tencent in the past month. Both companies are up by similar percentages year to date.
Ms. Lee said investors seem to have shrugged off concerns that U.S.-China tensions could hurt Ant's listing. Alibaba's stock kept climbing despite reports the Trump administration was exploring restrictions on Ant's Alipay and Tencent's WeChat Pay over concerns that those payment platforms could threaten national security.
At an investor conference that ended Sept. 30, Alibaba said its cloud-computing business would turn profitable and its logistics arm, Cainiao, would have positive cash flow from operations in the financial year to March, further boosting its stock, said Chelsey Tam, a senior equity analyst at Morningstar.
"Generally, Alibaba's management's tone is about digitalization and how Covid has accelerated it," she added, referring to Covid-19.
Alibaba shares also trade in Hong Kong, where they hit an intraday record of 293 Hong Kong dollars, the equivalent of US$37.81, on Friday. The stock later pared gains to close 1.2% lower at HK$286.20, slightly below last month's record close of HK$291.20.
Write to Chong Koh Ping at chong.kohping@wsj.com
(END) Dow Jones Newswires
October 09, 2020 05:46 ET (09:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Yes, otherwise expect volatility. (Outcome of election does not matter to me, but for this bet it does...short term)
Impressive how they’re investing around the globe, if we ease our pressure on China this stock will fly!
Alibaba Risks 'Saturation' If It Doesn't Expand To New Markets Soon, Says Analyst
6:25am ET 10/1/2020 Benzinga
Mentioned in article
AMZNBABAMGI
Alibaba Group Holding Ltd (NYSE: BABA) needs to expand its horizons beyond China and Southeast Asia if it is to keep up current levels of growth, an analyst told CNBC Thursday.
What Happened: Gil Luria, director of research at D.A. Davidson, talking on the 'Squawk Box Asia' program, said that the Jack Ma-co-founded tech giant's growth strategy of focusing on lower-tier cities in China may not pay off as it faces high competition.
The analyst said that with the Chinese market approaching saturation, Southeast Asia is 'only going to carry them for so long before they have to get into some of those other markets in order to sustain this growth.'
Potential markets for growth include Latin America and Africa, noted CNBC.
Why It Matters: National security concerns and worsening relations between the two countries have impacted the ability of Chinese companies to grow in the U.S.
In 2018, the U.S. blocked the sale of MoneyGram International, Inc. (NASDAQ: MGI) to Alibaba affiliate Ant Financial, Reuters reported.
'That really slowed down their ability to grow into the U.S. and the West in a variety of businesses,' Luria said, referring to the blocked deal.
The analyst said decoupling of the two economies would limit Ant Financial's ability to gain a foothold in the U.S., and to a smaller extent, also that of Alibaba's.
Luria expects Ant Financial's dual listing in Shanghai and Hong Kong to be popular among investors.
Growth for Alibaba may come from other segments. The company's cloud business only second to Amazon.com, Inc (NASDAQ: AMZN) is likely to turn profitable in the current fiscal, Alibaba's Chief Financial Officer Maggie Wu told CNBC.
Price Action: Alibaba shares closed nearly 6.2% higher at $293.98 on Wednesday and gained almost 0.4% in the after-hours session.
Photo courtesy: Thomas Lombard via Wikimedia
Latest Ratings for BABA DateFirmActionFromTo
Oct 2020NeedhamMaintainsBuy Oct 2020KeyBancMaintainsOverweight Sep 2020BenchmarkMaintainsBuy
View More Analyst Ratings for BABA View the Latest Analyst Ratings
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Two jockeys influencing this horse (baba), initials DT and JB.
Watch for today....
Wait for November
That’s a plus. ; )
To my point...
News Article
Short Sellers Piling Into Chinese Stocks As Trade Tensions Rise
5:00pm ET 9/18/2020 Benzinga
Mentioned in article
BABAGSXJDLKNCYNIOPDD
Trade tensions between China and the U.S. are once again on the rise over President Donald Trump's threats to ban TikTok and WeChat in the U.S. starting on Sunday. With the November election now only about six weeks away, S3 Partners analyst Ihor Dusaniwsky said short sellers are targeting Chinese stocks in a major way.
Dusaniwsky said China and Hong Kong short interest now totals $104 billion, an increase of $2.03 billion in the past month. The dispute between Trump and China over TikTok could be a preview of what's to come between now and the election, and short sellers seem to believe Chinese stocks could suffer.
Most Shorted China Stocks: Here are the five U.S.-listed Chinese stocks with the largest outstanding short positions, according to S3:
Alibaba Group Holding Ltd - ADR (NYSE: BABA), $11.72 billion in short interest.
JD.Com Inc (NASDAQ: JD), $3.24 billion in short interest.
Pinduoduo Inc - ADR (NASDAQ: PDD), $2.95 billion in short interest.
GSX Techedu Inc (NYSE: GSX), $2.38 billion in short interest.
Nio Inc - ADR (NYSE: NIO), $1.47 billion in short interest.
Short sellers have been particularly aggressive in betting against Alibaba and JD.com in the past 30 days. Alibaba's short interest has increased by $1.48 billion in that time, while JD.com's short interest is up by $320.7 million. Nio's short interest is headed in the other direction, dropping by $642.5 million in the past month.
Dusaniwsky said Chinese stock short sellers have had some home run trades in 2020 led by Luckin Coffee Inc - ADR (PINK: LKNCY), which has netted short sellers a $1.15 billion profit this year. However, short sellers have taken year-to-date losses of $2.51 billion on Alibaba, $2.45 billion on GSX Techedu and $1.77 billion on Nio.
'HK-China short sellers are down -$15.98 billion in mark-to-market losses for the year but are up +$935 million in September mark-to-market profits as the Hang Seng retreated -1.79%,' Dusaniwsky said.
Benzinga's Take: According to PredictIt, Joe Biden now has a 59% chance of defeating Trump in November. Given Trump has been extremely tough on China throughout his first term, any momentum Biden has leading into the election would presumably be bad news for Chinese stock short sellers.
Related Links:
Why Trump's TikTok Ban Could Be 'Fort Sumter Moment' In Cold Tech War Between US, China
'Partnership Better Than Acquisition': Analysts React To Oracle-TikTok Deal
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Really?
Business as usual....Blah Blah Blah
It split on the China listing.
It happened already...
Yes back to my original question.
Your right about that, how did you learn so much about politics? Business and politics have nothing to do with each other and the jockey and horse don’t either.
I was talking short term.
Wrong...all of us have a shelf life and exit at different times, politics are relevant. Future policies will have a short term effect.
Which Political party would be better for this stock?
News Article
Alibaba Stock Has Been on the Rise. It's 'a Great Buy at Current Levels.' -- Barrons.com
2:31pm ET 7/7/2020 Dow Jones
Mentioned in article
BABA
By Teresa Rivas
Alibaba stock is up 10% in the past week, helped by enthusiasm for both technology stocks and those with exposure to China.
Alibaba shares (ticker: BABA) were trading higher to start the day, but fell back to trade down 1.4% at $236.64 Tuesday afternoon, as the Dow Jones Industrial Average slipped 0.7%.
The Nasdaq Composite Index, a proxy for the technology sector, closed at a record high on Monday and was climbing again Tuesday. Tech has been a major winner this year, with the Technology Select Sector SPDR ETF (XLK) rising more than 17%.
Investors have been quick to snap up stocks related to e-commerce, which has experienced a boom during the pandemic because of stay-at-home orders and people working remotely and using videoconferencing and cloud computing. Biotech stocks have also benefited from hopes of a coronavirus vaccine, or at least an effective form of treatment.
Alibaba sits comfortably amid these trends, as it isn't only a huge online retailer, but a big player in the cloud space.
Still, the company hasn't had the big gains of other tech-oriented stocks. That may be attributable to investor worries about U.S.-China tensions. Chinese stocks, though, got a shot in the arm to start the week after a government-run media outlet ran a prominent editorial about the need for a bull market, lifting stocks across the board.
"The acceleration in China is arguably THE noteworthy technical development over the past week," Fundstrat's managing director of technical strategy, Robert Sluymer, wrote. As for Alibaba, he said it "remains attractive emerging from a broad 2-year trading range similar to the 2-year breakouts under way in Amazon.com (AMZN) and Netflix (NFLX)." He argued that near-term weakness is an opportunity to add to positions.
David Nicoski, chief investment officer at Vermillion Research, echoed that statement, amid bullish price and relative strength inflections for emerging market stocks. "Alibaba is a great buy at current levels."
Alibaba is about 12% year to date, against a 1.9% drop for the S&P 500, and there is no shortage of analysts who also think it can keep climbing.
Write to Teresa Rivas at teresa.rivas@barrons.com
(END) Dow Jones Newswires
July 07, 2020 14:31 ET (18:31 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
COVID aftermath
215.02 USD -0.69 (0.32%)
Closed: Jun 29, 7:58 PM EDT · Disclaimer
After hours 205.01 -10.01 (4.65%)
TipRanks
Strong buy
Based on the 19 best performing analysts who offered a 12-month price target in the last three months.
Buy (18)Hold (1)Sell (0)
Low price target$216.00
Average price target$257.95
High price target$290.00
View Expert Insights
Alibaba and JD.com handle a record $136.51 billion in sales during major Chinese shopping event
PUBLISHED FRI, JUN 19 20201:48 AM EDTUPDATED 3 HOURS AGO
https://www.cnbc.com/2020/06/19/alibaba-jdcom-handle-record-sales-during-618-event.html
Old article but interesting
Alibaba paid 36.6b yuan in taxes for 2017
By Cheng Yu | chinadaily.com.cn | Updated: 2018-01-23 17:06
Chinese e-commerce giant Alibaba Group Holding Ltd said on Tuesday that it paid a total of 36.6 billion yuan ($5.7 billion) in taxes in 2017, marking a sizeable increase from the 23.8 billion yuan paid in 2016.
That means Alibaba remains one of the largest taxpayers among Chinese internet companies, with paid tax exceeding 100 million yuan per day.
In addition, with merchants operating on Alibaba's platforms, its upstream manufacturers and logistics companies paid more than an estimated 290 billion yuan in taxes last year.
The company also said it has created more than 33 million jobs in China, with thousands of new types of jobs being created, including robot breeder and e-commerce anchor.
Employment in the United States 2020. In 2018, around 155.76 million people were employed in the United States. For 2020, an increase by almost 2 million employed people is expected.May 27, 2020
Any insight?
Senate may vote on bill that could delist Chinese companies from U.S. stock exchanges
The Truth.....
This is old!.
Beware: Alibaba IPO isn’t really selling Alibaba
Published: May 7, 2014 at 12:24 a.m. ET
They have until June or July I believe.