Alibaba's Hong Kong-listed shares rose 4% in Monday morning trade amid hopes of the years-long scrutiny of its financial arm Ant Group coming to an end.
that most of the outstanding problems associated with the financial businesses of platform companies have been resolved and that the domestic tech industry will see "normalized supervision."major restructuring
of its businesses, which some analysts suggested could signal that the Chinese government could loosen its grip on the domestic tech industry. "However, [regulators] have also emphasized the need for additional broader industry-wide regulations to effectively regulate the entire sector," Oshadhi Kumarasiri, equity analyst at LightStream Research, said in a"This suggests that the optimism regarding the end of regulatory scrutiny may be premature, as the new broader regulations could be equally stringent," said Kumarasiri.following Ant Group's fine.
"We calculate that Ant Group would be worth $89 billion~ of which Alibaba's stake is $29.4 billion~ given their 33% ownership in Ant Group. We suggest such valuation presents upside from consensus," said Yang, referring to"In our view, [Bloomberg's] valuation range is too low, as Ant Group is comparable to PayPal.
"The company's justification for the buyback, which includes providing liquidity to existing investors and attracting/retaining talented individuals through employee incentives, seems unnecessary if an IPO was imminent."
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