Alibaba Group which listed its shares on the Hong Kong Exchange closed up by 6.6 percent on its first trading session.
Alibaba (BABA.N) was up from its issue price by 6.6 percent on Tuesday. Shares were priced at $HK 176 per share, making it one of the largest listing in the world so far in 2019. It hit a high of $HK 189.5 per share intraday.
It is one of the most traded shares on the New York stock exchange too.
In spite of the severe political tension prevailing in Hong Kong, the Chinese company was able to capture investor interest. Demonstrators in Hong Kong have been protesting for democratic freedom from China.
The Chinese e-commerce giant ranks third in the Hong Kong stock exchange. In 2010 AIA Group saw a turnover of $HK 49.38 billion on its debut. China Literature stood second when it started trade in 2017 with a $14.17 billion turnover. It is a big boost to the Hong Kong market, say analysts as there is a huge slowdown in the economy.
With high turnover, Alibaba hopes to improve its online services and make it one of the biggest companies in market value and one of the largest in the world. It will also build on its local platforms Ele.me and its online travel services Fliggy. Youku is an online video platform that will also be developed.
There are rumors that the company was established in the Hong Kong Exchange in case there was trouble from the trade war raging between China and the U.S. This will serve as a back-up if the company faces trouble in the New York Exchange.
In 2014, Alibaba made a record-breaking IPO of $25 billion in New York. “We missed the listing in Hong Kong and had to go public in the U.S”, says Daniel Zhang, the CEO of Alibaba.