Alibaba, a Chinese fortune fairy tale being told in foreign soil

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Alibaba might be strange to people outside of China. However, in China, the concentration of Alibaba to Internet is like Nitrogen to the air.

Starting in 1999, a time when internet-based business was a unexplored territory, Alibaba Group focuses on e-commerce businesses, including business-to-business online web portals, online retail and payment services, a shopping search engine and data-centric cloud computing services. Business got further enlarged when it cooperates with Taobao, eBay.com in China, features nearly a billion products and is one of the 20 most-visited websites globally. For every one of the billions deal made on Taobao, Alibaba needs to be used for connecting customer and seller at least 3 times.

Without knowing the background of Alibaba, it might be a shock to hear that on the date of historic initial public offering, Alibaba has earned a market value measured as US$231 billion, an unprecedented record in American history.

What that triggers my interest is, why does Alibaba, a Chinese brand rooted in China, have to be launched in America? And if we look even closer, we would find out that there are 14 Chinese technology companies offered initial public offering globally, and 9 of them were launched into America markets. Moreover, Chinese technology companies were at the leading place in American capitalism market, seizing 4 places in the top ten largest initial public offering.

The answer, later I find out, can be simply put in this way: They can’t. They simply unable to launch into domestic market because it could not coordinates A-share, the main kind of stock regulation in mainland China market, and even cannot in launch at Hong Kong due to violation of certain types of management and needs to corporate government structure.

The fact is disappointing for both Alibaba Group, and vast amount of Chinese investors. For Alibaba, it cannot enjoy Chinese market that contains unlimited potential. For shareholders,being unable to buy shares from such a newly rised company is such a shame.

 

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