The largest e-commerce company of China, Alibaba Group has delayed its listing in Hong Kong of up to $15 billion in the wake of growing political unrest in the financial hub of Asia.
The listing plans for Hong Kong of Alibaba are being watched closely by the financial communities in order to find indications on the environment for business in Hong Kong which is a territory controlled by China and also provides a window into how the Chinese capital views this situation.
Alibaba’s spokesperson had refused to comment on this matter when they were contacted.
Although there has been no formally finalized new timetable, the e-commerce giant could launch the deal in Honk Kong potentially in October as they look to raise $10-$15 billion. This will only happen after the political unrest eases and the conditions of the market become favorable once again.
The deal which was earlier set for late August was postponed after a board meeting that took place before the release of latest earnings in the previous week.
After over 11 weeks of demonstrations demanding democracy, the protests have become more and more violent and have taken the city go down into turmoil and caused the political and financial instability leading to companies abstaining from going public in Hong Kong.
There have been arrests of over 700 people and tear gas has been used very frequently by the police which have led to an unprecedented event of the airport shutting down last week. The stock market of Hong Kong had fallen to a seven month low last week.
The deal is unlikely to materialize anytime soon because it would be annoying for China if such huge investments were made in Hong Kong with the turn of events in the country.