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This IPO is a measure of China's growing strength

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When Ant Group prices its IPO in Shanghai and Hong Kong this week, it could set a new world record for a stock market listing. But it will also ram home a much bigger point.
Ant is the crown jewel of Jack Ma’s tech empire, best known for its Alipay app that has more than 730 million monthly active users. On Tuesday, it’s expected to announce that it will surpass the $29.4 billion Saudi Aramco’s float raised last December by selling shares both in Hong Kong and on Shanghai’s Star Market, China’s answer to the Nasdaq. For Beijing, which wants to encourage more seasoned investors to park their money in Chinese stocks and more Chinese tech companies to list their shares at home, it’s poised to be a huge win. “The Chinese government is more than happy to host a national champion on one of its major capital markets domestically at a time when many Chinese companies are facing greater political headwinds overseas,” Xiaomeng Lu, senior geotechnology analyst at Eurasia Group, told me. Lu said Beijing has been trying to send a message to China’s top tech companies: “This is a difficult time, and we have your back.” A growing number of firms are listening as US-China tensions ramp up. There’s little clarity on whether the presidential election in November will reset the relationship. US threats and restrictions against Chinese tech companies like TikTok and WeChat send a warning. On Wall Street, Chinese firms also face additional scrutiny. Luckin Coffee was kicked off the Nasdaq following the disclosure of major accounting irregularities. US lawmakers, government agencies and stock exchanges have since taken steps aimed at limiting Beijing’s access to America’s vast capital markets.

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