After reading Yue Huang’s blog “IPO BABA” about her understanding of Alibaba’s situation, I would like to add more analysis on incentives of Jack Ma’s decision. As she said, the rapid speed of  E-commerce development  in China brings Alibaba intensive domestic competition. As a result, Alibaba should exploit foreign market to bring the company to compete at a higher level. In addition, I think the IPO of Alibaba is more than market strategy and risk taking of financial market; it takes a risky step to test the potential of E-Commerce under Chinese prohibitions on several foreign investment, and the corporate structure becomes a risky variable interest entity. Although it is hard to estimate the space of foreign investment because Alibaba’s development are influenced by the macro-environment in Chinese foreign investment regulations, in my opinion, it is worthy to seek larger space of development and higher platform of competition despite the uncertainty in financial market, because Alibaba is the leading Chinese company in E-Commerce and Jack Ma should have the ambition to explore because that’s part of the spirit of an entrepreneur.
Source of picture: Alibaba increases IPO price range www.dw.de