China's Alibaba's IPO to end US dominance in technology sector: expert

Alibaba's IPO to end US dominance in technology sector: expert
English.news.cn   2014-09-19 04:35:34       

LONDON, Sept. 18 (Xinhua) -- Alibaba's IPO could well be the end of U.S. dominance in the world technology sector, a professor from a Britain's business school told Xinhua on Thursday.

"Alibaba's annual growth rate of more than 30 percent shows that the gap between the Chinese companies, Alibaba and Tencent, and U.S. companies is getting ever closer," said Qing Wang, professor from Warwick Business School, one of the most prestigious and highly selective business schools in the world.

"The ability to understand customers intimately and continuously innovate should enable them to expand overseas with US dominance in the world technology sector gradually being broken," said professor Wang.

The strong performance and fast rise of the Chinese technology companies in the world was helped by an enormous and fast growing domestic market, she said. The competition in that domestic market among the Chinese companies, as well as with multinational corporations that have entered it, was extremely fierce and successful private companies like Alibaba had to be highly entrepreneurial and market-oriented, she added.

Professor Wang didn't see major risks for Alibaba after IPO, as this was not the first Chinese company who has done this and the earlier ones such as Tencent are doing well after their IPO.

But she warned that what Alibaba might need to watch out for is the short term orientation of the stock market, the expectation and pressure to deliver quick results, which may clash with his business philosophy.

She also warned risks for the shareholders, because Alibaba is a rapid growing Chinese private enterprise with a short history of 15 years. "Its corporate governance needs to be improved upon and the decision process needs more transparency and accountability for the stakeholders," she said.

It was reported that the shares were expected to be priced after the markets close at 4 p.m. Thursday and start trading on the New York Stock Exchange on Friday under the ticker "BABA."

NEW YORK, Sept. 18 (Xinhua) -- Chinese e-commerce giant Alibaba Group on Thursday set its initial public offering (IPO) price at 68 U.S. dollars per share, setting a record-breaking IPO in U.S. history.

The price per share is at the ceiling of its expected range of between 66 dollars and 68 dollars disclosed earlier.

China's e-commerce giant Alibaba to enjoy post-IPO pop

LONDON, Sept. 18 (Xinhua) -- The shares of Chinese e-commerce giant Alibaba Group could gain over 20 percent on the first day of their initial public offering (IPO) in the U.S., said a British analyst on Thursday.

"The high expectations that preceded the listing have meant that the shares will enjoy a post-IPO 'pop'," Chris Beauchamp, Market Strategist at IG Group, told Xinhua. Full story

News Analysis: Wall Street positive on China's e-commerce amid Alibaba enthusiasm

NEW YORK, Sept. 18 (Xinhua) -- As China's e-commerce giant Alibaba Group poised to claim the crown as the biggest initial public offering (IPO) in U.S. history, concerns arise about what implications it may have on other China-based e-commerce companies in the U.S. market.

Although some argued that investors could sell high-flying tech shares, especially other Chinese e-commerce stocks, to make room for Alibaba, many analysts expressed optimism about their growth potential in the long run.

Jack Ma denies emigration ahead of Alibaba IPO

HANGZHOU, Sept. 17 (Xinhua) -- Jack Ma, expected to become China's richest man this weekend after Alibaba's initial public offering (IPO) in New York, said on Wednesday he will not emigrate.

The Alibaba founder said on the company's official microblog that he has no plans to emigrate, despite rumors spreading online that he intends to move to Hong Kong.



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