Retail in Asia

In Trends

Alibaba needs “cash coffer” to compete in China

As Alibaba Group’s buyback of half of Yahoo’s stake paves the way for a possible public listing for the Chinese internet giant, one strategist tells CNBC if the company wants to stay competitive in the domestic market it needs to expand, for which it must raise a lot of capital.

"Alibaba Group needs to raise substantial amount of capital for it to maintain a dominant position in the e-commerce space. Not just maintain but really expand their competitive position," Jiong Shao, Regional Head of Internet & Chief China Strategist at Macquarie told CNBC Asia’s "The Call".

Chinese startups like 360buy.com, which raised USD1.5 billion last year from a group of investors, along with online services firm Tencent’s recent "huge push" into e-commerce could erode Alibaba Group’s market share, according to Shao.
 

(Source: CNBC)