Move continues wave of Chinese companies looking to list overseas

Internet giant Alibaba Group's decision to seek a listing in the United States will help rekindle global investors' confidence in Chinese companies, experts said.

China's top e-commerce company confirmed on Sunday that it would start the long-anticipated initial public offering procedure.

The proposed IPO marks the latest wave of Chinese companies flocking to the US, drawn by surging valuations for tech startups and optimism toward Chinese stocks, said Hong Bo, founder of IT consultancy company IT5.

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Li Zhi, principal analyst of Beijing-based Analysys International, said: "It is unlikely that Alibaba will experience short selling, since people are astounded by its meteoric growth and have confidence in the Chinese economy."

Fewer Chinese companies have listed in the US since 2011 amid accounting scandals and poor market sentiment. Eight Chinese companies listed in the US last year and only two in 2012, research company zero2ipo said in a report.

David Ethridge, senior vice-president and head of capital markets at NYSE Euronext Inc, said earlier this year that 15 to 20 Chinese companies, most of them tech companies, are expected to list at the exchange.

Alibaba said an IPO in the US would "make us a more global company and enhance the company's transparency, as well as allow the company to continue to pursue our long-term vision and ideals".

Should circumstances permit, Alibaba will extend its public status in the domestic capital market to share its growth with the people of China, the statement said.

The decision to seek an IPO in New York has put an end to rumors about its choice of venue, after the Internet behemoth wrapped up major buyouts to stay agile against cutthroat competition in the mobile Internet age.

The company had yet to decide a timetable, the underwriter, or the amount of money it hopes to raise through a listing, Alibaba spokesman Yang Lei said.

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