2022-12-16 • Updated
Alibaba’s affiliate Ant company may become the largest IPO not only now, but also in the entire history. Let’s discuss what it may mean for traders.
Jack Ma founded both Ant Group and Alibaba, the latter has a 33% stake in the fintech firm. Ant Group, or, as it is sometimes called, Alibaba’s fintech arm, is China’s leading mobile payments company. Notably, Ant’s main payments service, Alipay, has 900 million users in China and over 1 billion worldwide. Unlike the rest of the world, just a small part of the Chinese population uses credit cards. Instead of that, they prefer app-based payments. Here’s the most interesting thing: once people download Alipay, Ant will offer them other products and services - both financial and non-financial. It is an online mall providing anything from loans and travel services to delivery services. Therefore, people got used to the whole ecosystem and will unlikely change it in the future. Therein lies the uniqueness and success of this company.
All this fuss is because Ant Group is preparing to list shares simultaneously in Hong Kong and Shanghai. The dual listing may drive the company even above Saudi Aramco’s record of 29 billion dollars IPO. Analysts widely expect that the firm will reach a value of 225 billion dollars, if it really raises 30 billion dollars in the listing on the Hong Kong stock exchange and Shanghai’s Star market. Ant is growing quite fast. It announced a revenue of 17 billion dollars last year, that is a 40% increase from 2018 levels. Let’s look at the charts.
Alibaba has risen significantly in 2020. The coming announcement may drive the stock even higher. If it breaks out the $280 mark, it will open doors towards the key psychological level of $300. Otherwise, if it falls below the support of $270, it may dip down to the next one at $260.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
