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Shares of Chinese e-commerce giant Alibaba saw a great launch in Hong Kong on Tuesday, after pricing its shares at 176 Hong Kong dollars (approx. $22.5) apiece. This is the biggest listing this year so far, larger than the approximately $8 billion raised by Uber in May. This also came as an excellent boost for the Hong Kong market which had problems since the pro-democracy protests escalated in recent weeks. Alibaba trades under the stock code 9988 in Hong Kong. Nine and eight are considered to be lucky numbers in the Chinese culture, indicating long-lasting prosperity.

Alibaba stocks rose more than 6% at the opening and at the time of writing they were up 6.59% to HKD$187.60.

Alibaba decided to issue 500 million new ordinary shares plus 75 million so-called “greenshoe” options. This means that there is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

Tian Hou, founder and CEO of T.H. Capital called Alibaba’s Hong Kong listing “pretty successful” adding:

“Given time, we do believe the stock price is going to appreciate more. If we put another 10-year time frame, another five to six times appreciation is doable.”

In his letter to the investors Daniel Zhang, CEO and chairman of Alibaba wrote:

“When Alibaba Group went public in 2014 , we missed out on Hong Kong with regret. Hong Kong is one of the world’s most important financial centers. Over the last few years, there have been many encouraging reforms in Hong Kong’s capital market. During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright. We hope we can contribute, in our small way, and participate in the future of Hong Kong.”

Mary Manning, portfolio manager at Ellerston Capital commented that it was always very strange that the largest Chinese company was listed exclusively in the U.S.

Hong Kong Stock Exchange hasn’t seen one corporation raising so much (approximately $11 billion) since 2010. The stocks of Alibaba had been already listed in New York and with this listing, it will be easier for mainland investors to trade with it as well. Also, it comes as a great boost to the exchange that just saw its biggest profit fall in more than three years following a failed bid to buy its London counterpart in September.

However, this Alibaba move could be predicted already five years ago when the company had its debut on NYSE and decided to hold its $25 billion initial public offering. Also, its co-founder Jack Ma always wanted to take listing closer to home and, since the U.S.-China trade war started, it’s been hard, even for him to sustain growth.

Be it as it may, the new funds are helping Alibaba finance a war against homegrown rivals (Tencent as the main rival) and analysts predict that it could make cash reserves of around $44 billion.

Teuta Franjkovic , 2019-11-26 14:52:17 ,

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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