London Daily

Focus on the big picture.
Thursday, Nov 13, 2025

Why Alibaba is betting on Hong Kong

Political protests and petrol bombs aren't the ideal backdrop for a top global company looking to raise billions of dollars from investors.

But that's exactly what Alibaba is doing.

The Chinese e-commerce giant is preparing to raise at least $11bn (£8.5bn) by listing its shares on the Hong Kong stock exchange next week, in what could be the year's biggest public share sale.

"Hong Kong is one of the world's most important financial centers," reads a letter to potential investors from Alibaba's chairman, Daniel Zhang.

"During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright."

That's a pretty optimistic assessment given the violence on university campuses and the streets of Hong Kong this week alone.

So why now? And what does the multi-billion dollar listing tell us about investor confidence in Hong Kong?

Sources close to the company say political unrest in Hong Kong wasn't a factor in whether to go ahead with the listing, and the social upheaval doesn't appear to have affected appetite for Alibaba's shares.

The share offer closed ahead of schedule, which means that investors snapped up the stock at a faster pace than expected.

But some say the timing of the listing is questionable.

Max Bondurri, founder of SGMC Capital, says Alibaba could have raised more funds if it had waited.

"From a purely economic point of view they could have waited till next year to list, at a time when some of the unrest may perhaps have died down."

However, he believes the decision to list now was motivated also by political, rather than purely financial, concerns."

The suggestion is that Beijing can influence decision-making at Chinese companies to serve its political interests.

"It's an attempt to take the negative headlines away from what's going on in the streets and universities," he says.

"It will help to remind international investors that Hong Kong is still open for business."

Still, the protests have had an impact. The listing event itself is likely to be low-key and low-profile.

It is unclear whether Jack Ma, the exuberant former chairman whose name has become synonymous with the e-commerce giant, will attend. It's also not clear if Mr Zhang will be there.

This raises questions about the level of concern the firm might have about potential violence outside the exchange or near its executives.

Investors won't queue up outside the exchange or banks to get their hands on paper receipts because Alibaba has decided to go paperless for this listing - the first time a firm has done so in Hong Kong. Some have said this is to avoid the risk of protestors attacking investors who might be out on the streets.


A boost for Hong Kong?

Alibaba's listing is likely to distract from the violence playing out on the streets, for a few days at least.

It may also reassure investors that if a giant such as Alibaba is willing to take the risk and list its shares in Hong Kong, the city's reputation as a financial hub must still be intact.

Weijian Shan, the man often described as Asia's private equity "king", told me the Hong Kong Stock Exchange was the only "bright spot" in an economy currently beset by violent turmoil and recession.

A quick guide to the Hong Kong protests

Hong Kong in first recession for a decade

How protests pushed HK's economy to the brink

More than two hundred Chinese companies are listed on the Hong Kong Stock Exchange, making up almost half of the exchange's value.

Their value is unlikely to be affected by the day-to-day protests, although negative sentiment from the political crisis no doubt filters through to the stock market in moments of heightened tension.

Still, concerns over Hong Kong's reputation should be taken seriously - and it's not just because of the unrest.

Increasingly, there's a perception in the business community that Beijing calls the shots in Hong Kong.

This week, Chinese state media came out strongly against a decision by Hong Kong's courts that the anti-mask ban was unconstitutional, raising fears that Beijing will wade in even further.

This potentially threatens the independence of Hong Kong's judiciary, the sole reason international companies come to the city and list there.

Hong Kong's courts are - for now at least - still independent from China's. The more that fades, the more Hong Kong's future as an international financial centre is diminished - whether companies like Alibaba choose to list there or not.


Back to its roots

Against a complicated political backdrop, Alibaba has long expressed a desire to bring the company "home" to Hong Kong.

It had hoped to list its shares there in 2014, when the firm first went public. But the city's listing rules at the time meant it made more sense for the company to float in New York.

An investor in Alibaba's US shares told me that the Hong Kong listing was a "genius move", because it will allow mainland Chinese investors to buy shares in a company they know well.

"Expect the shares to pop on the first day of trade," says the investor, who didn't want to be named.

"Mainland Chinese investors will want to show their support for a company they see as one of their own."

Even though Alibaba has no shortage of cash, the Hong Kong listing could help to raise money for future challenges, especially in the US.

"Because of the US-China trade war, there's more scrutiny of Chinese companies listed in the US," he says.

"If Alibaba raises this cash in Hong Kong, it allows them to potentially delist their shares in the US if they run into any trouble with US authorities in the future over any potential national security concerns."

For now, Alibaba says there are no plans to delist its shares in the US.

"The New York Stock Exchange is the primary listing venue" an Alibaba spokesperson told me. "We will continue to be listed and traded on the New York Stock Exchange."

Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×