Alibaba, China’s flagship internet company, is mulling listing shares in Hong Kong to raise $20 billion, Bloomberg reported.
The ecommerce giant raised $25 billion in its New York offering in 2014, after Hong Kong refused to accept Alibaba’s dual-class share structure. Since then, Hong Kong has decided to allow some dual-class listings.
It looks good for Alibaba to list close to home as the U.S.-China trade war gets hot. Listing in Hong Kong would give China’s investors a chance to own a piece of the company made profitable by their online shopping. Hong Kong’s stock market has an exception to China’s strict controls over the flow of money across its border.
And as Bloomberg points out, a new Alibaba listing would let it raise a lot of cash at a time when China’s economy is growing slower.