Sun, Sep 21, 2014 - Page 13 News List

Alibaba stock soars on trading debut

UNLIMITED GROWTH:Demand for shares in the newly publicly traded company, whose IPO offered investors unlimited growth potential, sent its market value sky high

AP, NEW YORK

Yet the track record for Chinese stocks in general does not inspire confidence. Over the last two decades, they have earned a reputation for burning investors in both the US and China. Many of those that do post gains fail to keep pace with inflation. Returns have been depressed by a range of factors, including fraud allegations, questionable accounting and cumbersome regulations.

Alibaba decided to list in New York because it wanted an alternative class share structure to give selected minority shareholders extra control over the board; the Hong Kong bourse declined to change its rules to allow this.

A US government panel has warned of risks to investors because of a complex corporate structure. Alibaba is registered in the Cayman Islands and controlled by a partnership through a series of shell companies.

Additional reporting by AFP

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