Beijing hopes the decision to sell 1.67 billion shares of the company, or about 11% of the company’s total, in both Hong Kong and Shanghai, will attract long-acquired experienced institutional investors. If the stock price is an indication, that strategy seems to be working.
Powerful tech giant
Reflecting Mani’s success with Alibaba, Ant has rapidly evolved into one of the world’s most powerful tech companies. It has established its presence in every aspect of financial life in China, from investment accounts and micro-saving products to insurance, credit scores and dating profiles.
The company’s payment application Alipay had 731 million monthly active users as of September, Ante said in a regulatory filing. The platform paid 118 trillion yuan (.7 17.7 trillion) in the 12 months to June.
The company said revenue for the nine months ended September rose nearly 43% to 118.2 billion yuan (17 17.7 billion) from the same period last year. Total profit rose 74% to 69.5 billion yuan (10. 10.4 billion) during the period.
“Ant is seen as this national technology champion – he invests in AI, he invests in blockchain,” Lou said. These are priorities for Chinese President Xi Jinping, he added.
Geopolitical considerations have already been a major background factor in Ant’s IPO.
A growing number of Chinese companies are seeking refuge on the national exchange in the wake of tensions between Washington and Washington, and the success of the kit could encourage more companies to sue, said Brock Silvers, chief investment officer and former chief investment officer at Caiuan Capital. Adams Asset Management.
U.S. threats and sanctions against Chinese tech companies such as Huawei, Ticket OK and WeChat have sent a clear warning, while investigations of Chinese companies on Wall Street are on the rise.
But Coffee was kicked off the Nasdaq after a major accounting irregularity was revealed. Steps have since been taken by U.S. legislators, government agencies and stock exchanges to limit Beijing’s access to major U.S. capital markets.
This atmosphere is probably the main reason why Ante chose to list Alibaba on the exchange in Shanghai and Hong Kong, rather than following Wall Street. In the long run, it could benefit China, as investors rush to snatch ant shares as money is directed to its markets.
The stock is scheduled to start trading in Hong Kong from November 5. The listing will push the market capitalization of the Shanghai Stock Exchange closer to the Tokyo Stock Exchange. According to Lou.