Alibaba shares continued to rise when Ant Group was “green light”
Alibaba shares continued to go up on April 13 trading day after Ant Group – an affiliate of Alibaba, was “green lighted” to restructure according to the holding model.
|Alibaba shares listed in Hong Kong on April 13 rose 0.43% after the previous session rose 6.5%. Photo: AFP|
Asia-Pacific stocks recorded reverse waves in the afternoon session of April 13. South Korea led the uptrend in the region with the Kospi index rising 1.07% to 3,169.08 points, while Japanese stocks posted modest gains, with the Nikkei 225 index closing up 0.72. % to 29,751.61 points while the Topix index edged up 0.2% to 1,958.55 points.
The mainland Chinese stock market recorded mixed developments. The Shanghai Composite Index slipped 0.48% to 3,396.47 points while the Shenzhen Component rose 0.242% to 13,528.31 points.
On the Hong Kong market, the Hang Seng Index slightly increased 0.15% and closed at 28,497.25 points. Shares of Chinese e-commerce giant Alibaba closed on April 13 in Hong Kong with a 0.43% increase. At the previous session, Alibaba shares rebounded 6.5% stronger although the group was fined nearly $ 2.8 billion for violating antitrust regulations in China.
Alibaba shares went up after the Central Bank of China announced on April 12 that Ant Group, an affiliate of Alibaba, would have to restructure into a holding model – the parent company that holds voting rights in another company, which may control the company’s policies and oversee management decisions.
Alibaba currently holds about 33% stake in Ant Group. Ant Group is currently operating Alipay – one Mobile payment app is very popular in China. In November 2020, Ant Group’s initial public offering (IPO) with an expected mobilization of 34.5 billion USD was “whistle” by the Chinese authorities. At that time, changes in the legal regulations for financial technology management (fintech) were thought to be the cause of this IPO’s stall.
However, it is said that Ant Group’s IPO was halted just days after Jack Ma, the founder. Alibaba and Ant Group, made some criticisms of the Chinese financial system.
Also in Hong Kong, shares of chip maker SMIC rose 1.19% on April 13 trading day, while shares of other Chinese technology companies listed in Hong Kong all fell. Shares of Tencent fell 0.9% while shares of Meituan plunged 7.44%. The Hang Seng Tech also slipped 1.6% to 8,038.81.
Shares of Tencent and Meituan technology “red floor” after the two companies were on a list of 34 companies warned by the Chinese authorities in a statement that “development companies platform “must ensure to monitor its operations and correct any noncompetitive practices within one month. The move comes just days after Alibaba was fined $ 2.8 billion for violating antitrust regulations.
On the Australian stock market, the S & P / ASX 200 index closed insignificantly up to 6,976.90 points. In general, the MSCI Asia-Pacific (excluding Japan) was flat.
US stocks last night was quiet because investors were hesitant to wait for US inflation information to be published on April 13 (US time). The S&P 500 index shook slightly last night around 4,127.99 points, while the Dow Jones industrial average lost 55.2 points to 33,745.40 points. The tech-oriented Nasdaq Composite fell 0.36% to close at 13,850.
In the currency markets, the greenback remained weak as the US dollar index against other major currencies fell to 92,153, from 92.8 recorded last week. Meanwhile, the Japanese Yen inched up and converted 109.35 JPY to “eat” USD, from over 109.5 JPY for 1 USD yesterday, while the Australian dollar dropped and changed hands 1 AUD for 0, $ 7613, compared with $ 1 / $ 0.765 last week.
Oil prices traded by Asian hour were also quiet April 13 afternoon. Futures Brent crude oil prices inched up 0.3% to $ 63.47 / barrel while US crude futures delivered remained stable at $ 59.80 / barrel.