The biggest e-commerce company in China is planning to postpone its $15 billion listings after the political issues between the federal and local government.
According to reports, the financial community is closely watching the investments of Alibaba in Hong Kong; this indicates the perspective of the Chinese federal government over Hong Kong issue.
However, the company is hopeful to launch the project and look forward to earning revenue up to $15 billion, once the political situation is at ease and the market is suitable to do business.
According to Reuters, the company stated that the delay is happening because of the political and financial fluctuations. Hundreds of people are arrested and the airport was shutdown. Last week Hong Kong market fell seven months low.
The company stated that, if they go forward with the plans it would upset the capital city and the given situation it is not preferable.
This would be certainly a big push towards the Hong Kong exchange, which is falling gradually. Although, the company wants to diversify into capital markets but is in no hurry. Last month a company canceled its $9.8 billion Hong Kong IPO.
This unsettling political situation is crashing the Hong Kong economy and causing financial instability.