With Alibaba’s mammoth IPO set to go live in the US in September, there has been more scrutiny on the group’s previous financial dealings. In a recent interview with The Wall Street Journal, CKGSB Professor Chen Long gave his thoughts about Alibaba’s restructuring of agreements to gain a bigger share of earnings from its payment affiliate.
With Alibaba’s mammoth IPO set to go live in the US in September, there has been more scrutiny on the group’s previous financial dealings. Chen Long, Professor of Finance and Associate Dean at CKGSB, recently gave his thoughts to The Wall Street Journal about how Alibaba’s restructuring of agreements to gain a bigger share of earnings from its payment affiliate Alipay highlights the growing importance of financial services to the Chinese e-commerce giant’s future. The following extract comes from the article:
“In the future, financial services business based on Alipay could become just as valuable as Alibaba’s e-commerce business,” said Chen Long, professor of finance at Cheung Kong Graduate School of Business. Taking advantage of Alipay’s massive user base and ability to collect credit information, Small and Micro could eventually turn Alipay into a platform for a wide range of services, from online banking to commercial credit to insurance, Mr. Chen said.
Please read the full article, Alibaba Restructuring of Alipay Pacts Could Boost Value, on The Wall Street Journal website.
For more CKGSB insight on the Alibaba IPO, please see this Forbes article featuring CKGSB Professor of Finance Henry Cao.
