17:21
Traffic jam:   5
$
92.5919
100.2704

China's securities regulator denies US delisting requirements

6 December 2021
2898
2 min.
7
China's securities regulator denies US delisting requirements

There will be no delisting in the US

On Monday, Alibaba (BABA) announced that it will restructure its international and domestic e-commerce business by creating two independent divisions to "grow more smoothly and quickly."

The International Digital Commerce Department will include AliExpress, Alibaba.com and Lazada division will be headed by Jiang Fan, former president of Taobao and Tmall. The Alibaba's domestic commerce business will be transferred to the China Digital Commerce Department, and will be led by one of Alibaba's founders Trudy Dai.

In addition, Alibaba's deputy chief financial officer Toby Xu will replace Maggie Wu as the company's chief financial officer from April. At the same time, Wu will continue to serve as an executive director on Alibaba's board of directors.

These changes are likely an attempt by Alibaba to respond to increased regulatory pressure from the US and China.

Alibaba shares are at a low

The company faces a number of obstacles to growth, including:

  • Risks of further antitrust action by Chinese regulators (Alibaba has already been fined $2.75bn).
  • Risk of delisting from the NYSE if Alibaba refuses to open its books to US scrutiny.
  • A weakened competitive position due to the growth of competitors in the market (Alibaba's last quarterly report was worse than rival JD.com).
  • Analysts described Alibaba's sales growth rate during the year's biggest single day sale ("11.11") as the slowest ever.
  • China's slowing economy.

Given the slowdown and increased competition, Alibaba recently lowered its 2022 revenue growth forecast to a rate of 20-23%, down from its previous growth forecast of 30% and the slowest growth rate since Alibaba debuted on the US stock market in 2014.

Alibaba (BABA) shares fell to further lows last week on fears of delisting from the NYSE after Didi (DIDI) said it would start delisting from the NYSE and plan to list in Hong Kong instead. Trading signals and forecasts for Alibaba shares.

"Political concerns remain a key factor," said Selina Sia, head of equity research in China at Credit Suisse Private Banking, referring to the fall in Alibaba shares.

It is worth noting that China's regulator has denied reports of a ban on domestic companies with VIE structures listing overseas.
 

Persons5 and Companies2 in the news

President of Taobao and Tmall
1 place
President of Industrial E-commerce and Community E-commerce at Alibaba Group
2 place
Head of Greater China Equity Research for Private Banking & Wealth Management at Credit Suisse
3 place
Executive director on the board of directors of Alibaba Group
4 place
Chief Financial Officer at Alibaba Group
5 place
Alibaba Group
2 place
Section:

Discussion

Rating companies
Tesla
14 Mention
Instagram
13 Mention
JP Morgan Chase
12 Mention
Walt Disney Company
12 Mention
Ford Motor Company
10 Mention
Netflix
10 Mention
Amazon
9 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8112663043
Died this year
14274273
Born this year
35117238