Chinese Alibaba debut a boon to Wall Street?
Joshua Brustein, Businessweek: “With Alibaba officially headed toward an initial public offering, it’s finally time for Yahoo to cash in. ... American investors have bought shares in Yahoo, which owns nearly a quarter of Alibaba, as one of the easiest ways to bet on a bright star of the Chinese Internet industry. ... While the cash gives (Yahoo) more flexibility to bolster its core business, the company has ... been spending like a drunken sailor. ... Eventually, the company will have to become something more than a clever way to invest in other companies.” Brian Nichols, The Motley Fool: “In the next few months, at least three high-profile dot-coms based in China will make their U.S. market debut. ... Demand is high for fast-growing dot-coms, especially large companies like Alibaba, JD.com and Weibo. You can certainly invest in any of these companies, or you can gain the safety of a (mutual-fund like) ETF while capitalizing on the likely excitement.” Kara Swisher, Re/code: “Alibaba’s success has already been a boon to ... Internet giant (Yahoo), boosting its shares hugely. ... But who needs a U.S. turnaround when Alibaba execs are doing all the work for you? ... Whatever the timing, the IPO will also set off a feeding frenzy on Wall Street, as the big investment banks vie for a piece of the action.” Josh Noble, Financial Times: “Alibaba’s decision to head to the U.S. for its blockbuster IPO ... is undoubtedly a major blow to Hong Kong’s global ambitions. But chucking out years of hardwon progress for a single pay day — with the risk of opening the (Hong Kong) market to myriad potential problems down the road — would have been the wrong move. ... Hong Kong’s future is dependent on the likes of Alibaba. ... But the city also needs the right rules to manage them.” Heather Timmons, Quartz: “Alibaba’s founders ... wanted to retain control of the company’s board of directors with a dual class of stock, which is forbidden under Hong Kong ’s rules. Although some exchange officials and countless bankers signaled they were in favor of changing the rules, Alibaba ultimately ran into staunch opposition from Hong Kong ’s powerful regulator, the Securities and Futures Commission. ... The SFC’s overarching focus appears to be keeping Hong Kong ’s huge number of domestic retail investors safe. ... Failing to keep Hong Kong’s investors happy can result in public spectacle.”