Alibaba’s Hong Kong-listed shares rose 4% on Monday morning.
Qilai Shen | Qilai Shen Bloomberg | Getty Images
Performance of Alibaba’s Hong Kong Listed Equity
In March, Alibaba announced: large-scale restructuring Some analysts have suggested it could be a sign that the Chinese government may loosen its grip on the domestic tech industry.
“but, [regulators] Lightstream Research equity analyst Oshadi Kumarasiri also highlighted the need for additional broader industry-wide regulation to effectively regulate the industry as a whole. report Published on the research platform Smartkarma.
“This suggests that optimism about ending regulatory oversight may be premature, as new broader regulations could be similarly stringent,” Kumarasiri said. rice field.
Ronald Wang, non-executive chairman of Partners Financial Holdings Ltd., told CNBC’s Street Sign Asia that Alibaba and Ant Group’s growth rates will be “severely limited in the future.” .
“While there was good news in the regulatory dispute resolution, it does mean that Ant Group could operate like a Chinese state-owned bank in the future,” Wang said.
Sean Yang, managing director of the Blue Lotus Institute, said: Bullish on Alibaba Follow Ant Group fines.
“Considering Ant Group’s 33% ownership, we calculate the value of Ant Group to be ~$89 billion, of which Alibaba’s stake is ~$29.4 billion. It also suggests that there is an upward trend,” Yang said. Ant Group Rating by Bloomberg Just $22 billion to $57 billion.
“In our opinion, [Bloomberg’s] Ant Group has too low a rating range as it is comparable to PayPal. With the end of over-regulation on Ant Group, the company could be valued at a multiple close to PayPal’s, suggesting a higher valuation for Bloomberg,” Yang said.
On Saturday, Ant Group announced a share buyback that would value the company at $78.53 billion. According to state media CGTN. That’s lower than Ant’s $315 billion valuation when it attempted to go public in 2020.
Kumarasiri said a share buyback “raises questions, especially if the company has plans for an IPO in the near future.”
“The company’s justification for buybacks, such as providing liquidity to existing investors and attracting and retaining top talent through employee incentives, becomes unnecessary when an IPO is imminent. Seem.”