Recently, Jack Ma's return to China has made the domestic business district boil again. After a few days of silence, the explosive news of Alibaba's split and listing came out of the Alibaba department. The logic and opportunity behind Alibaba's break-up listing will be a matter of concern as it relates to the future development of China's largest e-commerce company and reflects changes in China's economy and society. This article will interpret this problem from the following aspects:
1. China's economic situation and economic transformation.
Alibaba is China's largest e-commerce company and one of the world's most influential internet companies. Recently, Alibaba announced the launch of the "1+6+N" organizational reform, that is, under Alibaba Group, six major business groups and a number of business companies, including Alibaba Cloud Intelligence, Taobao Tmall Business, Local Life, Cainiao, International Digital Business, and Dawen Entertainment, and established the boards of directors of each business group and business company, implemented the CEO responsibility system under the leadership of the board of directors of each business group and business company, took overall responsibility for their respective operating results, and had the possibility of independent financing and listing. Alibaba's split listing reflects the changing economic situation in China and the need for economic transformation.
As the impact of the pandemic fades, China's economy has recovered strongly, but it also faces some challenges, such as insufficient domestic demand, structural imbalances, and financial risks. In order to cope with these problems, the Chinese government has proposed a new development pattern with "dual circulation" as the main feature, that is, with the domestic circulation as the main body and the international and domestic dual circulation promoting each other as the characteristics. This means that China should accelerate the cultivation of domestic market demand, improve independent innovation capabilities, optimize industrial structure, and enhance international competitiveness. Alibaba's split and listing was carried out against the backdrop of China's economy facing downward pressure and the need for transformation and upgrading.
Alibaba's split and listing is in line with this trend, by operating and listing its diversified businesses independently, it can better adapt to market changes, improve efficiency and innovation, and enhance core competitive advantages. At the same time, it can also provide more support and impetus for China's economic transformation, such as promoting digital transformation through Alibaba Cloud intelligence, promoting consumption upgrading through Taobao Tmall commerce, serving the real economy through local life, building intelligent logistics networks through Cainiao, expanding overseas markets through international digital commerce, and enriching cultural life through entertainment. By splitting into six business groups, Alibaba can better adapt to market demand, improve efficiency and innovation, and enhance competitive advantage. At the same time, Alibaba can also take this opportunity to accelerate the layout of emerging fields, such as cloud computing, logistics, local life, internationalization, etc., to achieve diversified development and reduce risks.
2. Transformation of national regulatory direction.
Alibaba's split listing also reflects the adjustment and improvement of the direction of national supervision. In recent years, with the rapid development and expansion of the Internet industry, some online platform enterprises have encountered problems such as monopoly, unfair competition, and infringement of consumer rights and interests, which have attracted great attention from the society and the government. In recent years, the Chinese government has strengthened its supervision of the Internet industry, requiring online platforms to comply with anti-monopoly regulations, protect user privacy and data security, and maintain fair competition and social order. Alibaba, as an industry leader, has been punished and investigated by the government for suspected monopoly and abuse of market position.
Alibaba's split and listing is also carried out in the context of the state strengthening the supervision of the Internet industry, cracking down on monopoly and unfair competition, which is conducive to regulating the development order of the Internet industry and protecting the fair competition environment. At the same time, Alibaba can also take this opportunity to reach better communication and cooperation with the government and society, actively fulfill its social responsibilities, and promote fair competition and common development.
3. State support for private enterprises.
Alibaba's split and listing was also carried out under the guidance of the state's policy of supporting the development of private enterprises and encouraging innovation and entrepreneurship. By splitting up, Alibaba can provide more autonomy and flexibility for its various business groups and business companies, and stimulate internal dynamism and creativity. At the same time, Alibaba can also take this opportunity to set an example for other private enterprises, share experience and resources, and promote industrial chain synergy and ecosystem construction. Alibaba's split listing is a self-adjustment to adapt to changes in the market environment. By spinning off and going public, Alibaba can diversify different businesses and improve flexibility and innovation. Alibaba's split and listing also reflects the state's support and encouragement for private enterprises, which hope that they can give full play to their advantages and contribute to economic and social development under the premise of legal compliance.
4. The stock market is ushering in major opportunities.
Alibaba's split listing also comes at a good time when the stock market is picking up and investor confidence is rising. By splitting up, Alibaba can provide more financing channels and listing options for its various business groups and business companies, increasing market capitalization and liquidity. At the same time, Alibaba can also take this opportunity to bring more activity and diversity to the stock market, attracting more investors' attention and participation. Alibaba's split listing shows that the stock market is heading positive. Alibaba is currently listed on NASDAQ and Hong Kong and is one of the world's largest internet companies. Alibaba's split listing means that each of its subsidiaries may be listed independently on different exchanges, which will provide investors with more options and opportunities.