China's tech giants see Hong Kong as middle ground.

Brock Silvers

Exploding marketing expense is consuming the company, investors are rejecting management's explanation of rising costs as mere investment, and instead see a possible wobbly business model in competition with larger, better funded rivals.

Alibaba hardly lacks access to capital, but the Hong Kong listing isn't being driven by normal business strategy. Alibaba is being a good corporate citizen — and a shrewd operator — in following Beijing's dictates.

The listing reflects politics more than business strategy. by Brock Silvers

The listing reflects politics more than business strategy.

Trump has threatened to restrict China's access to U.S. capital markets, and Alibaba's Hong Kong listing could help blunt that leverage.

While the added access to capital should prove to be extremely us... by Brock Silvers

While the added access to capital should prove to be extremely useful, it isn't a necessity.

Given Ma's experience and massive stake in the company, as well as Jack Ma status as the perhaps the only major Chinese executive capable of effectively representing China Inc. on a global stage, there is little chance that [ Jack Ma ] will fade away, especially given today's worsening trade environment, Jack Ma will continue to play a significant role.

China is seeing deep foreign capital outflows as doubts increase regarding its basic investability.

China's concerns over personal data are exacerbated when the data is at risk of being controlled by The United States interests.

The environment is now so opaque and difficult that even the iconic master-operator Jack Ma has paid a very dear price for missteps, zhang Yiming and Colin Huang are intensely aware of this example, and Zhang Yiming and Colin Huang desire to not follow in Ma's most recent footsteps probably played at least some role in Zhang Yiming and Colin Huang respective decisions to step down.

Zhang was a young software engineer without significant business experience when he suddenly found himself running a massive company in rapidly shifting markets while operating in an extremely complex regulatory and political environment.

Ant Group IPO is now Ant Group IPO, and the company looks like it may be broken up and regulated toward a vastly reduced overall valuation.

Whether 2021 is more kind to Alibaba may depend on the ultimate nature and length of Jack Ma's sudden silence.

The political calculus driving China's US-listed tech firms to seek secondary listings was originally Beijing's desire to bring those companies under its bureaucratic control, but it has evolved in light of the trade war and subsequent de-coupling.