Ali Hongkong Listed On The First Day Of Hot Trading: Long Line Of Institutions Still Hold, The Short Line Has Been Sold.

At 9:30 a.m. on November 26th, Alibaba group (09988.HK) was officially listed on the HKEx and became the first China Internet Corporation to be listed on both the US stock market and Hong Kong stock market.

"Ali's first day deal is very hot, trading volume is 4 billion more than that of Tencent," he said. "In the Hongkong market, finally, the situation of the two giants of China's Internet has been formed." Wu Biwei, President of Fu Road Securities and financial services, said.

The day of Alibaba listing opened at HK $187, closing at HK $187.6, up 6.59% from HK $176. Alibaba port stock market value is HK $4 trillion and 10 billion, and its market value exceeds Tencent holdings, making it the largest market share company in Hong Kong stock market.

In twenty-first Century, the business reporter reported that Alibaba was listed on the first day of Hongkong, and some new institutions and retail investors had already made profits and sold at the opening. Long term institutions and investors continue to hold.

Trade boom

Some new institutions and retail investors have already fulfilled their profits on the first day. A private equity fund in Shanghai based on the quota of Ali new shares was sold after opening in November 26th.

"Friends around me will basically sell their quotas on the first day and sell them at the opening price. They can earn a few points today, and that is the problem of earning more money." A private person said.

"Ali is priced at HK $176, with HK $187 in HK dollars and 6.2% in profit without considering costs, which is very rewarding for four trillion of the volume companies." Wu Biwei said, "institutions may be dominated by long term holdings, while retail investors are at a reasonable stage of speculation."

"Today, the first day of the listing of Ali is driven by short-term funds, which is driven by new enthusiasm. But several points on the first day of listing will soon disappear. The price trend of Ali in the future will basically follow the US stock market. The above private placement said that some new retail investors and agencies believed that making profits as soon as possible could avoid the risk of Alibaba's future price fall.

Also worried about price risk, many private equity and public funds investing in Hong Kong stocks said they did not buy Alibaba shares in the two tier market in November 26th.

On the same day, the turnover rate of Alibaba -SW was 14.91%.

In contrast, a large number of long-term investment institutions and retail investors continue to hold Alibaba.

Alibaba shares on the first day of the Hong Kong stock market stabilized roughly 40 times PE, and the market value exceeded 4 trillion yuan.

Xia Fengguang, a fund manager of private placement network, believes that Alibaba is one of the top Internet giants in China and is suitable for large organizations.

Because Ali valuation is still in a reasonable range, after all, its revenue growth in 2019 reached 50%, net profit growth of nearly 40%. Because the faucet Internet Co is very deep and has growth potential, it is not unconcerned by large organizations.

For small and medium-sized institutional investors seeking flexibility, the Hong Kong stock market has plenty of derivatives to connect with big blue chips. "Alibaba listed on the first day of listing has 17 tracking products, which can be adapted to different investors." Xia Fengguang said.

For the aftermarket, the industry generally believe that Alibaba follow the long-term trend of two main points: first, the trend of us shares and the United States Ali; second, Ali's own business data. The second point is considered to be more important.

Two new days of ice and fire

According to the prospectus, Alibaba issued 500 million shares of new shares and another 75 million subscriptions. According to the price of HK $176, Alibaba raised HK $101 billion 200 million at most in Hong Kong (about US $13 billion). Even if it does not, it will exceed the $8 billion 100 million Uber, which is the largest global issue in 2019.

In fact, Alibaba's subscription of new shares is very popular. Since the beginning of November 15th, the first day of international placement has been in full or even half a day ahead of schedule. According to market information, the amount of public offering is over 40 times, and the frozen capital is more than 96 billion 300 million yuan, surpassing the 70 billion 949 million yuan of hand tour. This has become the "frozen capital king" of Hongkong's new stock this year.

Ali set the issue price of Hongkong IPO to HK $176 / share, compared with the closing price of Ali shares, which is equivalent to two points discount. The market thinks that the subscription result of Ali is very satisfactory.

The listing of Alibaba in Hongkong was enthusiastically sought after by institutional investors and retail investors. According to the insiders, as a long-term investor in the Hongkong market, Alibaba shares will be allocated. Alibaba will enter the Shenzhen Hong Kong Tong, Shanghai and Hong Kong through the standard, and will become a constituent stock of the Hang Seng Index, which will be popular in international placement and open subscription.

In addition, "Ali + Tencent two shares account for 20% of Hong Kong stocks, basically every index fund must buy Ali." A private director of overseas investment said.

"International placement is mainly based on institutional investors, and publicly subscribed to retail investors, while retail investors, especially retail investors in Hongkong, are less trading in U.S. stocks. Leading companies such as Ali listed in Hongkong will be highly sought after." Wu Biwei said.

It is reported that there are a large number of mainland retail investors participating in the Alibaba's new fighting. Because of too much excitement, there are traders who are unable to trade because of the new rush of the new system.

The Alibaba fever continued to the day before the listing price, according to Fu tau Niu App data show that Alibaba on the 25 day, the highest price of Fu Dao securities in the dark market was 188 yuan, the relative cost price rose 6.82%. The closing price was 184.7 yuan, and the relative cost price rose by 4.94%. Ali's Secret trading volume reached HK $121 million, accounting for about 26.14% of the market share.

However, the other side of the coin is that many mainland investors who have invested in Hong Kong stocks and private equity funds have not participated in the new competition.

Zhang Lichong, founder of the US port capital partnership, said: "the price of Alibaba's new shares is equivalent to about US $180 / share, and there is no obvious discount, so we are not involved in the new competition. At present, the valuation of Alibaba is basically in a relatively reasonable range, and has a certain long-term investment value. The short term listing may be likely to rise because of the pursuit of capital, but in the long run, the trend is similar to that of the US stock market, which is in line with the fundamental changes."

A QDII fund manager said that in the US stock market, Alibaba shares were held for a long time. The Alibaba in the United States and Hongkong had the same thing, which could be freely circulated directly, equivalent to a company listed on the Shanghai Stock Exchange and listed again in Shenzhen Stock Exchange. The international fund should match Ali's early match, so there is no need to buy it in Hongkong.

For Ali's first 6.59% rise in Hongkong and the closing price of HK $187.6, "US stock Ali is now the price in 2017." The QDII fund manager said with emotion.

A number of private equity funds and retail investors said that they did not subscribe to Ali stock, mainly because the discount price was too low, and they planned to wait for Ali to enter again after the adjustment in the two tier market. Some people believe that Ali fell about 30% is the ideal time to buy, and some agencies hope to fall to 10-20 times the price earnings ratio of Ali to buy again.