The Chinese Protests May Have Postponed Alibaba’s Listing

According to two unidentified people familiar with the matter, Alibaba Group, the largest e-commerce company in China, has delayed its listing in Hong Kong.

The up to $15 billion listing has been delayed as political tension escalates in the country said the sources to Reuters.

One of the sources revealed that Alibaba had a board meeting ahead of its latest quarterly earnings report last week and it was during this meeting that the board decided for the delay.

The listing was set to take place late this month.

The sources explained that the company’s decision had been made on the lack of financial and political stability in Hong Kong amid more than 11 weeks of pro-democracy demonstrations which have become increasingly violent and plunged the city into turmoil.

“It would be very unwise to launch the deal now or anytime soon. It would certainly annoy Beijing by offering Hong Kong such a big gift given what’s going on in the city,” said one person.

Last week Alibaba reported strong earnings for the fiscal first quarter that ended in June where revenue and earnings beat analysts expectations.

Disclaimer: We have no position in Alibaba Group Holding Ltd (NYSE: BABA) and have not been compensated for this article.