4 Trillion, Hong Kong Stock Market Capitalization Is The First! Alibaba Shares Opened Up 6.25%!

After a lapse of seven years, Alibaba group returned to Hong Kong Stock Exchange yesterday to issue pricing. HK $176 The stock code is 09988. The opening price of HK $187 was 6.25% higher than the issue price.

As of noon, Hong Kong stock Alibaba rose 6.87% to HK $188.1 per share, HK $9 billion 800 million, and HK $40229 HK $, making it the largest share market in Hong Kong stock market.

Alibaba listed a total of 500 million shares of new shares, and 75 million more than the right to subscribe, according to the price per share of HK $176, financing HK $101 billion 200 million, second only to AIA and ICBC. Become the third largest IPO in Hong Kong stock history 。

It is worth noting that After the listing of Alibaba, the HKEx will gather two big internet giants, Ali and Tencent. Investors will also share dividends from the development of the two Internet giants. At the same time, Alibaba has also been listed at the two international exchanges in Hongkong and the United States.

Why has the listing of Alibaba HKEx been attracting much attention?

The Alibaba listing in Hongkong has attracted much attention. On the one hand, as early as 2007, Alibaba had listed its B2B (public to public) business in Hongkong, becoming the largest scale of China Internet Corporation financing. Another important reason was that in 2014, Alibaba was listed on the New York stock exchange of the United States, raising about $25 billion, becoming the largest IPO in the world. Since then, Alibaba's stock and turnover in the NYSE have been doing well.

After it was officially launched in Hongkong in November 26th, Alibaba will become an international Internet Co listed on both exchanges. It successfully crossed the two metropolis of nlun port, the world's three largest international financial center.

Will Alibaba be incorporated into Hong Kong stocks?

Li Xiaojia, chief executive of HKEx, told the media after attending the Alibaba listing ceremony today that the number of shares currently listed on Hong Kong second is limited, and only 4 foreign companies, which fail to enter the Hang Seng Composite Index share, are unable to become Hong Kong stocks through joint stock stocks, while mainland investors can not invest in such shares through "Hong Kong Stock Exchange".

When Alibaba can enter Hong Kong stocks, he said: "we are communicating with all sides, including mainland exchanges, regulators, index companies, etc. Such a good company, the company platform that everyone is using, should be included one day. "

The Alibaba's second listing is in the form of "SW" in Hong Kong, and "S" represents the second listing. "W" represents the same rights of different enterprises. "SW" represents Alibaba (09988). It is the second listed company in Hongkong and shares the same rights.

Is there a price difference between us and Hong Kong stocks?

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As a company listed on two international exchanges, what is the relationship between the US stock and the Hong Kong stock market? What is the relationship between Alibaba and Hong Kong stock? Is there a price difference between them?

In June 17th this year, Alibaba issued a notice announcements of the stock split plan, which expanded the number of ordinary shares from 4 billion shares to 32 billion shares. In July, the board of directors of Alibaba passed the stock split plan, and the ratio between common stock and American depositary share (ADS) is from the present. 1:1 becomes 8:1 。

Hu Qimu, a researcher in the digital economic think tank, 1 US stocks can be converted into 8 Hong Kong stocks. No matter how the stock price fluctuates after Ali's listing in Hongkong, they can convert shares according to this ratio. Moreover, this stock exchange is reversible, and Hong Kong stocks can also be converted into US stocks in proportion to 8:1, and eight Hong Kong stocks will become a US stock.

Analysts said US stocks and Hong Kong stocks represent the equity of Alibaba group, and US stocks and Hong Kong stocks can transform each other. However, the application can only be submitted after the Alibaba is officially listed on the HKEx. The conversion between us shares and Hong Kong stocks is not restricted by trading window period. 。

Wang Zehua, an analyst with trade and retail industry in Tianfeng Securities Research Institute, After excluding the expected share price and excluding the transaction cost, the stock price will gradually converge. From the issue price level, there should be no obvious price difference. But after the possibility of listing in Hongkong, Asian investors are relatively enthusiastic and can unilaterally promote the rise of Hongkong's stock price. There may be a certain price difference later. 。

Softbank remains the largest shareholder of Alibaba

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According to the prospectus issued by Alibaba, what is the current shareholding structure and proportion of Alibaba?

Reporter Zhang Xinyue: According to the prospectus issued by Alibaba, as at the end of 6 in 2019, Softbank group holds 25.8% stake, the largest shareholder of Alibaba, and will remain the largest shareholder after the global sale is completed. The total shareholding of Ali executives and directors dropped to 9%, of which ma shares 6.1% and Cai Chongxin shares 2%.

Wang Zehua, an analyst with trade and retail industry in Tianfeng Securities Research Institute, The 500 million common shares issued by Ali in the Hongkong market are assumed to be fully circulated in the Hongkong market, which accounts for a small proportion of the total circulation of Ali shares, and only 2%-3%. Therefore, the impact on the overall share dilution is very small, and it will not have any impact on the overall business of the company and our investment judgment for Ali.

As of June 30, 2019, the number of Alibaba's consumer business + ant gold service users was 960 million; in the third quarter of 2019, Alibaba's operating income increased by 40% to 119 billion 17 million yuan over the same period last year, achieving a net profit of 32 billion 750 million yuan, an increase of 40% over the same period last year. From the point of view of revenue composition, the sales revenue of China's commercial retail sector increased by 40% over the same quarter, up to 75 billion 786 million yuan, accounting for 64% of total revenue. If combined with Alibaba wholesale business, as well as rookie logistics and local life business, the core business income will account for 85% of total revenue. In addition, the performance of Ali cloud intelligent forum was the fastest, and its operating income reached 9 billion 291 million yuan in the current quarter, an increase of 3 billion 624 million yuan over the same period last year, with a growth rate of 64%.

Hu Qimu, a researcher in the digital economic think tank, In the past two years, Alibaba has been increasing investment in cloud computing and digital media. Its cloud business is now ranked according to different rankings. It is always between second or third places in the world, after Amazon. This support for future business development is very strong. This is a very core technology.

Reporter Zhang Xinyue: On the day of double eleven this year, the total transaction volume of Alibaba reached 268 billion 400 million yuan, a record high. It is worth noting that the Alibaba officially became the 33% holder of the ant's gold suit, and the proceeds from the one-time receipt of the ant's gold suit were 69 billion 200 million yuan.

Overseas experts are optimistic about Alibaba's performance in Hongkong Market

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How does the European and American markets view Alibaba's return to Hong Kong stocks? What does this mean for investment institutions in Europe and the United States?

Alibaba listed on the main board of the Hongkong stock exchange. This listing has also attracted widespread attention in the European and American markets. Many experts are optimistic about the market performance after the listing of Alibaba.

Max Wolf, partner of Multivariate venture capital and private equity company: I think the fundamental success of Alibaba, including the growth of the company, and the recent achievements of the "double eleven" are remarkable. These factors will drive the rise of share price, which has nothing to do with the place and mode of listing. In the long run, this is a matter related to the development of enterprises, electronic commerce, and the deepening and internationalization of China's Internet economy. Because Alibaba and Tencent are leading the Chinese Internet mode to the world. This growth process will be the main reason for the long-term drive of the stock price, rather than the location of the listing.

Reuters Zhang Yuhao: As early as 2014, Alibaba was listed on the New York stock exchange, and at that time, it set a record of $25 billion in listing and financing, which is widely favored by local investors. This Alibaba listing in Hongkong will bring new opportunities to overseas investors once again.

Brandon Ahearn, chief investment officer of the U.S. To be sure, the initial public offering will be lower than the US share price, in order to attract investors into the Hongkong stock market. But if Hongkong's valuation is much higher, it can be arbitraged through two markets. I think we, as an American investor, will benefit from listing in Hongkong.

Alibaba plans to finance the Hongkong listing to implement company strategy, including improving user growth, boosting digital transformation and upgrading of enterprises, and investing in a long-term future.