The massive news has come down for the Hong Kong capital markets. Alibaba, one of the world’s largest tech companies, is considering raising $ 20 billion through a second listing in Hong Kong, Bloomberg reported Monday, citing sources.
TechCrunch reached out to Alibaba for comment and will update the story when we have more information. Alibaba said it does not comment on market rumors when contacted by TechCrunch.
The unnamed people told Bloomberg that the money raised in Hong Kong is intended to help Alibaba “diversify funding channels and boost liquidity.” The Chinese e-commerce giant is aiming to confidentially submit a listing request as early as the second half of 2019, according to the report. That would come five years after Alibaba posted a record $ 25 billion on the New York Stock Exchange following Hong Kong’s refusal to approve its filing due to rules on the company’s structure.
But the Hong Kong Stock Exchange is becoming an increasingly popular destination for public offerings that bring Chinese tech companies closer to investors at home, as my colleague Jon Russell explained in 2017. The defining moment has arrived. when the stock market finally introduced the dual-class tech stock listings. last year, a huge draw that helped HKEX attract tech favorites like smartphone maker Xiaomi and food delivery service Meituan Dianping.
The news also came at a time when Chinese tech companies are facing growing hostility in the United States amid a series of lengthy trade negotiations. Huawei and dozens of its affiliated companies were hit hard after the United States placed them on its “entity list,” meaning that US companies must seek government approval before doing business with these Chinese companies. Last week, China’s largest chipmaker announced that it would be delisting on the New York Stock Exchange and focused on its existing Hong Kong listing, though the company claimed the plan had been in the works for some time and had no nothing to do with the trade war.