How Chinese Investors Are Gaining Access to Alibaba’s IPO
September 15, 2014

Though Alibaba is listing on the New York Stock Exchange, many investors in China still plan to get access to one of the hottest tech stocks on offer. In a interview with The Wall Street Journal, Associate Professor of Strategic Management at CKGSB Teng Bingsheng told The WSJ’s Deborah Kan how Chinese investors will use brokerage companies to set up accounts in Hong Kong or invest in Alibaba indirectly by buying Chinese funds that have been set up to do that.

Given that most of the top Chinese internet stocks are listed in the US, including Baidu and Sina, this is a well-trodden route for Chinese investors, but with Alibaba the giant among China’s Big Three tech firms, Teng expects there will be even more interest this time around.

Teng revealed that Chinese investors hold a significant portion of both Baidu and Tencent, and said he expected that, over time about 20-30% of Alibaba stock would be owned by Chinese investors.

Please watch the video in full at The Wall Street Journal’s website here.

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