Alibaba Spinoffs Bring Some Hope to Hong Kong’s Tepid IPO Market
- City could benefit from breakup by Alibaba, other groups
- Bourses in Shanghai, Shenzhen could also attract listings
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Alibaba Group Holding Ltd.’s decision to break its $220 billion empire into six units and potentially list them is spurring hopes of a much needed boost to Hong Kong’s IPO market.
The financial hub’s advantages include easy access for foreign investors, while Beijing’s proximity can ease its policymakers’ concerns about oversight, according to analysts. While other Chinese conglomerates may follow Alibaba’s overhaul, mainland bourses could also attract some potential listings, they said.