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Report: Alibaba Files For Hong Kong Listing As Trade Tensions Simmer

Shanthi Rexaline

An offshoot of the U.S.-China trade impasse may be the reduction in the Chinese shares eyeing U.S. listings.

After the U.S. barred domestic tech companies from maintaining relationships with Chinese phone maker Huawei, it is feared that the sentiment will trickle down to stock exchanges too. 

Billions At Stake

These fears were compounded with reports of Chinese ecommerce giant Alibaba Group Holding Ltd (NYSE: BABA) filing confidentially for a Hong Kong listing, according to Bloomberg

The company could raise billions from a stock sale, according to the Wall Street Journal

In September 2014, Alibaba listed its shares on the NYSE following a $25-billion IPO.

At the time, the company chose the U.S. exchange,, giving the Hong Kong stock exchange the cold shoulder — primarily due to rules that barred dual-listed shares from the exchange.

Since then, the exchange has repealed the law.

What's Next 

The secondary listing puts Alibaba at an advantage, as it now has a bigger market for its shares, boosting its already large valuation.

Alibaba's U.S.-listed shares have a market cap of roughly $417 million.

The proposed offering is likely to be managed by China International Capital and Credit Suisse, the Journal said.

Alibaba shares were trading slightly higher at $160.15 at the time of publication Thursday. 

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Photo courtesy of Alibaba.

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