1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Alibaba Group Holding Limited
  6. News
  7. Summary
    9988   KYG017191142

ALIBABA GROUP HOLDING LIMITED

(9988)
  Report
Delayed Hong Kong Stock Exchange  -  04:08 2022-08-12 am EDT
92.90 HKD   +1.25%
08:48aAlibaba, Baidu Submit App Algorithm Details to China Internet Regulator, Reuters Reports
MT
07:06aWARREN BUFFETT : Buffett shrugs, Disney brags
RE
06:47aHacker offers to sell data of 48.5 mln users of Shanghai's COVID app
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Hong Kong's top finance executives bank on city to thrive as gateway to China

06/27/2022 | 04:58am EDT
FILE PHOTO: Charles Li, CEO of Hong Kong Exchanges and Clearing Limited, speaks at the Sandler O'Neill + Partners Global Exchange and Brokerage Conference in New York

HONG KONG (Reuters) - In 1997, the world watched as Britain returned Hong Kong to Chinese rule, with some pessimistic or wary about the outlook for the city and its role in the global financial system.

Twenty-five years later, Hong Kong has so far retained its status as a financial hub, and some of the city's top executives are banking on a bright future as the territory remains a crucial springboard for investment into mainland China.

Charles Li, former chief executive of bourse operator Hong Kong Exchanges and Clearing (HKEX) and founder of microfinance platform Micro Connect, said that although he believes the next 25 years will be "very different", he's optimistic.

"I'm convinced that the overall prosperity of Hong Kong will remain as strong as before because Hong Kong retains its value to both sides," Li told Reuters, referring to China and the West.

When he celebrated the handover with friends more than two decades ago in the city's bustling nightlife district of Lan Kwai Fong, Li said many people saw it as the "beginning of a very long ride, and the best is yet to come."

On Friday, Hong Kong reaches the halfway mark of a 50-year experiment designed to give the city a high degree of autonomy under Chinese rule.

Critics of the government say political and civil liberties have been hugely curtailed, especially since the introduction of a national security law in 2020.

The finance sector has thrived since the handover. The value of Hong Kong's stock market has surged to HK$27.65 trillion ($3.52 trillion) as of end-June, up from HK$3.2 trillion in 1997 and global investors have become increasingly reliant on Hong Kong to trade mainland stocks.

Turnover on the Hong Kong-Shanghai stock connect pipeline - which provides access to closely controlled mainland capital - jumped to 46.5 billion yuan on June 22, up from 12.8 billion yuan when it launched in 2014, according to data from HKEX.

On the Hong Kong-Shenzhen stock connect channel, turnover stands at about 58 billion yuan, up from 2.7 billion yuan at its launch in 2016.

'INDISPENSABLE'

Although uncertainty clouds the outlook for political and civil liberties under electoral changes and the sweeping national security law, other business executives say Hong Kong's standing as a financial hub will stay intact.

Some business lobby groups and diplomats have expressed concern over the outlook for Hong Kong, given an exodus of talent and worries over the rule of law and judicial independence.

"Hong Kong will remain indispensable, (and) also the most competitive gateway between China and the rest of the world," Fred Hu, founder and chairman of private equity group Primavera, told Reuters. "I don't believe any mainland city, including some cities I love, will bypass Hong Kong."

The city has contended for some of the world's hottest initial public offerings in recent years, including Alibaba, the New York-listed e-commerce titan, which journeyed to Hong Kong to raise $13 billion in a secondary listing in November 2019.

Hong Kong has been the world's top stock exchange by IPO value seven times since the handover, most recently in 2019, when 146 companies raised a total of $40 billion on the main board, according to Dealogic data.

In a move that authorities say underscores the importance China attaches to Hong Kong, President Xi Jinping will attend the swearing in of the city's new leader, John Lee, on Friday as well as celebrations to mark the handover.

"I believe the central government's intention toward Hong Kong is benign. They don't want to mess up Hong Kong," Hu said.

A former security chief who is sanctioned by the United States, Lee will be closely watched by a financial industry eager to get back on track after crippling COVID-19 restrictions that have triggered an exodus of people and seen the border with mainland China largely closed for two years.

David Chin, UBS' head of investment banking for Asia-Pacific, is optimistic on Hong Kong's outlook, although he says China's role on the global stage is key.

"Hong Kong is also the international gateway for China," he said. "So the foreign relationship, how China interacts with the rest of the world, is also very important for Hong Kong."

($1 = 7.8490 Hong Kong dollars)

(Reporting By Selena Li, Kane Wu and Julie Zhu; Writing by Anne Marie Roantree; Editing by Gerry Doyle)

By Selena Li, Kane Wu and Julie Zhu


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 1.25% 92.9 Delayed Quote.-21.87%
HONG KONG EXCHANGES AND CLEARING LIMITED 0.17% 348.6 Delayed Quote.-23.58%
UBS GROUP AG 1.20% 16.085 Delayed Quote.-3.20%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.03% 6.736 Delayed Quote.6.00%
YUM CHINA HOLDINGS, INC. -0.44% 48.055 Delayed Quote.-3.15%
All news about ALIBABA GROUP HOLDING LIMITED
08:48aAlibaba, Baidu Submit App Algorithm Details to China Internet Regulator, Reuters Report..
MT
07:06aWARREN BUFFETT : Buffett shrugs, Disney brags
RE
06:47aHacker offers to sell data of 48.5 mln users of Shanghai's COVID app
RE
06:26aFive Chinese state-owned companies, under scrutiny in U.S., will delist from NYSE
RE
06:19aChina regulator says Alibaba, Tencent have submitted app algorithm details
RE
05:51aMASAYOSHI SON : With Alibaba stake cut, SoftBank's Son cools toward China tech
RE
04:36aChina stocks fall amid COVID flare-ups, even as Taiwan tensions ease
RE
03:18aHacker offers to sell data of 48.5 million users of Shanghai's COVID app
RE
02:47aJapanese Equities Surge Following Return from Holiday, Cabinet Reshuffle; SoftBank Soar..
MT
02:33aNikkei ends at 7-month high on hopes for slower U.S. rate hikes
RE
More news
Analyst Recommendations on ALIBABA GROUP HOLDING LIMITED
More recommendations
Financials
Sales 2023 910 B 135 B 135 B
Net income 2023 95 901 M 14 219 M 14 219 M
Net cash 2023 295 B 43 715 M 43 715 M
P/E ratio 2023 18,0x
Yield 2023 -
Capitalization 1 694 B 251 B 251 B
EV / Sales 2023 1,54x
EV / Sales 2024 1,25x
Nbr of Employees 245 700
Free-Float 98,3%
Chart ALIBABA GROUP HOLDING LIMITED
Duration : Period :
Alibaba Group Holding Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 44
Last Close Price 639,86 CNY
Average target price 1 044,35 CNY
Spread / Average Target 63,2%
EPS Revisions
Managers and Directors
Yong Zhang Executive Chairman & Chief Executive Officer
John Michael Evans Independent Director
Hong Xu Chief Financial Officer
Li Cheng Chief Technology Officer
Pan Hua Xu Senior Investment Manager
Sector and Competitors
1st jan.Capi. (M$)
ALIBABA GROUP HOLDING LIMITED-21.87%251 172
ALIBABA GROUP HOLDING LIMITED-20.14%251 172
MEITUAN INC.-20.54%139 150
PINDUODUO INC.-14.89%62 739
MERCADOLIBRE, INC.-23.43%51 973
SHOPIFY INC.-70.65%51 268