Despite the world being in the biggest slump I have ever witnessed, we see technology continue to pace forwards. We have even seen giants such as Alibaba earn well but hit a wall as Ant Group hit a wall with their IPO. Jack Ma was due to lead an IPO in Hong Kong but this was halted abruptly by the Chinese government. Reasons stated refer to protect market stability on the markets. So even during these uncertain times, money is flowing and companies showing growth and seeking backing might see even greater success than the period before the pandemic struck. Money has been flowing back and forth for the past couple of years and the pandemic has been a catalyst for a new wave of cash flow for many areas.
The Ant Group IPO is a point of focus for many as it shows that markets may only move with approval from the governing powers. Many have referred this to a grounding of even the richest as Jack Ma sits as one of the wealthiest persons in China. This level of uncertainty has caused Alibaba stocks to slide, taking a plunge on November 4th. Perhaps this is a temporary dive of opportunity though as the IPO has not been cancelled outright, simply delayed indefinitely. Regardless, uncertainty and doubt have settled in and price has reflected as such.
With the current climate, perhaps Alibaba are desperately trying to realise other streams of revenue as e-commerce is slowing. The halt of the IPO will also be a kicker for realised numbers in the future and competitors in China may benefit over this setback in the coming months. It’s going to be an interesting 2021 as we see further events in the tech world in tandem with political control.
https://www.ft.com/content/f0f7db5e-cf3d-4c7a-a99e-0c634fef4c43
