Chinese giant Alibaba’s HK rally is at risk from three misconceptions

Chinese giant Alibaba’s HK rally is at risk from three misconceptions

People walk by the Alibaba Group logo. Photo: Bloomberg

Alibaba Group Holding Ltd.’s landmark $11 billion share sale and listing in Hong Kong on Nov. 26 was galvanized by expectations the Chinese e-commerce giant will attract a vast pool of capital from its home country. But some investors caution against unrealistic expectations, especially by mainland investors, and highlight certain restrictions that still govern — and potentially curtail — trading activity in Alibaba’s Hong Kong shares.

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