ββ#ForexChief #Alibaba #forexnews #nyse #stocks #market #profit #Traders #JackMaβ
π Alibaba update: the market is full of optimism
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π Alibaba Group Holding Ltd. plans to split its $220 billion empire into six divisions that will be able to conduct separate IPOs and attract independent investments. This will cause less control over the flow of capital, but it gives a chance for effective development. For the last two speculators have already raised the price (NYSE: BABA) by 15%.
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Alibaba's reform announcement coincided with the return of billionaire co-founder Jack Ma to China after more than a year abroad.
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The transition to a more autonomous holding structure is extremely rare for a Chinese high-tech business. This breaks with the tradition of Internet companies to keep most of their operations - from supermarkets to data centres - under the legal and financial control of Alibaba's headquarters.
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The corporation is willing to take risks to attract investors and public markets after the Xi Jinping administration nearly destroyed Chinese e-commerce, reducing its liquidity by more than $500 billion. This will be a strong argument for focusing investors on certain lines of business.
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The reform will reduce the impact of regulatory risk for new independent divisions, and US investors will be able to invest in e-commerce without getting involved in more conflicting lines of business, such as artificial intelligence.
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The Hang Seng Tech Index, which tracks the stocks of the top 30 tech companies listed in Hong Kong, rose by almost 3% by the close of trading on March 29, Tencent's stock rose by 1.75%, Meituan's by 4.01%, Baidu's by 4.73% and even competitor
JD.com added 1.92%. Apparently, the raiders interpret the situation as a signal of the end of official Beijing's repression.
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Alibaba's reform plan has been approved by Chinese regulators in advance, so fans of Asian assets may risk short-term hype.
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Profits to yβall!