The Exploration of the Reasons for Alibaba to List on the New York Stock Exchange (NYSE) in 2014

Abstract

Alibaba made an important announcement on August 8 in 2022, showing that its requirement about applying to the Hong Kong Stock Exchange for a dual primary listing in Hong Kong and New York had been confirmed and approved by the Hong Kong Stock Exchange. Unquestionably its such a crucial action that was done by Alibaba to expand its market and finance further after its first controversial large-scale Initial Public Offerings (IPO) on the New York Stock Exchange (NYSE) in 2014. The listing process of Alibaba created a sensation in the world that gave rise to the discussion about the reasons and effects of this decision for the company itself and the IPO market in China in recent years. The current study summarized the previous professional articles on these discussions to explore the key reasons for Alibaba to choose to list on the NYSE and the changes in the thoughts of this decision due to the changing times. Although this decision let Alibaba slip into a more competitive global business environment and resulted in the query for its unique governance structure, listing on the NYSE was still more beneficial for Alibaba at that time. The proper unprecedented determination brought greater growth opportunities for Alibaba and provided guidance for future companies. With the development of the times and policy reform in China, the methods of Initial Public Offerings in the companies certainly tend to be more varied and exoteric that need to be innovated and dialectically treated.