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Good Evening, you're now watching CBN Money Watch, an English daily financial news program, brought to you from our Shanghai studio. I am Gloria Ai. We are here to give you the latest updates on China's financial news and economic policies.

 

Lead:

 

Today we continue to discuss Alibaba. Although Alibaba has not yet listed on a stock exchange, share prices for Alibaba have already been listed on the iWind, a new trade information sharing platform, and at a substantial price. Let us take a closer look.

 

T1:

 

iWind is a new trade information sharing platform that went online on July 15th. It’s main business is stock and investment products. On only iWind’s second day of activity, an anonymous user listed Alibaba shares for sale. According to the listed account information, this user has 60 to 100 thousand shares of Alibaba Group, with each share priced at 28 dollars (or 175 yuan). Shares must be purchased in sums of 10,000. Contact with this user yielded the following information.

 

SOT1:

 

Anonymous user selling Alibaba shares:

The shares you are selling are from an internal employee, correct?

Correct.

Why are you reselling these shares?

I am not at liberty to say. The employee is interested in selling them.

Is the price you listed your final price?

I am unable to confirm the price at this moment. Because once the company is listed, the price is likely to fluctuate.

 

 

 

T2:

 

There is already a precedent for the sale of this employee’s shares at this early stage. In 2011, Singapore investment firm Temasek Holdings, Silver Lake, a private equity firm, and Russian Investment firm DST, bought shares of Alibaba worth over 1.6 billion dollars, from Alibaba employees for 1.3 billion dollars. A high-ranked Alibaba employee told this reporter, “These 2 years have seen several Alibaba employees sell their own shares in the company to outside buyers”. But, with news of Alibaba listing its IPO in Hong Kong, employees’ sales of Alibaba shares have received increased attention. According to the $28 asking price of this latest private seller, Alibaba Group is estimated to be worth 75 billion dollars. As the date of Alibaba’s listing draws near, Internet industry expert Xiang Li Gang says that Alibaba’s listing will be a huge shock to capital markets.

 

SOT2:

 

3G Industry Association Secretary General, Xiang Li Gang:

 

Alibaba’s listing will be a huge shock

to the whole capital market

We all know that Alibaba has 12 subsidiaries

which will be packaged and listed together as one

It is rare in China and the whole world

to witness the listing of this kind of complete ecommerce system

 

T3:

 

Mr. Xiang believes that Alibaba’s listing will earn 100 billion RMB, and that Alibaba Group will use these finds to make new acquisitions. This could bring about a significant change to the entire Internet and ecommerce ecosystem. Alibaba Group CEO Lu Zhao Xi has previously stated that Alibaba is already prepared to list and can launch its IPO at any time. Hong Kong and New York are both possible locations for Alibaba’s IPO.

Thanks for watching CBN Money Watch. See you tomorrow.