A Study On Hong Kong Stock Exchange Essay

1008 Words Nov 4th, 2015 null Page
The founder and chairman of Alibaba is Jack Ma, he established and launched the business in early 1999 from his small apartment in Hangzhou. Alibaba is an online platform that allowed small and medium sized Chinese manufacturers to interact with international buyers. Basically, Alibaba made it easier to find and communicate with the manufacturers of a ventures product. Chinese and foreign companies knew very little about the Chinese suppliers making them reluctant to risk funds transacting with strangers. Alibaba bridged this gap; this substantially increased the amount of trust between firms and manufacturers, therefore increasing the profit found on both sides.

The first paragraph of this case study entails their issues with Hong Kong Stock Exchange (HKEx), forcing them to make their initial public offering (IPO) on the New York Stock Exchange (NYSE). Alibaba 's 28 partners wanted to weigh their shares more heavily than the average share, HKEx wouldn 't allow them to do this, which ultimately compelled them to make their initial public offering on the NYSE. NYSE allowed them to make the partners shares more significant, thus giving them all the control in the company. Now, one might look at this as a negative, but they had the direction in which the company was going mapped out. They had a structure in mind that was solely fixed on the long term profitability of the venture, hence accumulating more money for investors. Nonetheless, it may lose someone 's interest in the…

Related Documents