SINGAPORE (Dec 9): Our big bet on Alibaba Group Holding is starting to pay off. For much of the past two years, the stock performance has been lacklustre despite rising sales and profits. Investor sentiment was affected by worries over the worsening trade war between the US and China, the slowdown in the world’s second-largest economy and, to a certain extent, concerns over the Chinese government’s involvement/interference in the company. At the worst point of the trade spat, there was even talk of delisting Chinese stocks from the New York Stock Exchange.

Because of many of these reasons, its recent secondary listing on the Stock Exchange of Hong Kong (SEHK) was an important catalyst and turning point. The move brings Alibaba much closer to its home turf, where investors are not only familiar with its name but are most likely users and customers of its products and services.

About one-third of the US$14.6 billion ($19.9 billion) raised from the secondary listing came from Mainland Chinese funds, a growing capital pool. Insurance and mutual funds are expected to expand rapidly in Asia-Pacific, where savings rates are high.

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