CCTV Script 08/09/14


— This is the script of CNBC's news report for China's CCTV on September 8, Monday.

Welcome to the CNBC Business Daily, I'm Qian Chen.

Alibaba sets the wheels in motion, as it kicks off its roadshow in New York later today.

It's set an indicated price range for $60 to $66.

And could raise as much as $24 bn, valuing the company at some $163 bn.

Its shares are expected to trade next week but the big question remains -- should you get in?

[HENRY GUO / Senior Research Analyst, Chinese Internet, JG Capital] "The valuation here is below what we expected so for us, we're expecting something that the lower $200 billion can translate into maybe $90 to $100 per share. I like the direct investment of Alibaba. I still think that gives us more exposure to the growth story here."

[KING LIP / Chief Investment Officer at Baker Avenue Asset Management] "I think Alibaba has done their homework, they'll learn from Facebook, they're going to price this conservatively, and expecting to see a fairly large pop on the first day. And the fact that they hired Goldman Sachs as what they call the stabilization agent I think also bodes well. Goldman Sachs has had a very good record in acting in that capacity. So I do believe we're going to have a very successful first day trading of Alibaba when it does trade."

But in America, many are asking "Alibaba, who?"

So far there has been no mass scramble by retail investors.

And it is their demand that causes the huge leaps higher on that first day of trade, like we see with a lot of tech IPOs.

[ROGER KAY / President, Endpoint Technologies] "It's a foreign company, it's a Chinese company. People don't know that much about it. It seems overwhelming. In fact, it is overwhelming. The fact is, it's much bigger than most of its American counterparts. And so this behemoth comes in, it's got this business that people don't really understand very well. They don't know much, they've hardly heard of it before. And all of a sudden they want to sell stock at a very high price. And I think the retail investors are going to hear more about who Alibaba actually is, and so the fact is the sophisticated investors, the institutional investors are going to come right in. They're perfectly comfortable with it. In fact, they've got a better income statement than a lot of the American companies."

[KING LIP / Chief Investment Officer at Baker Avenue Asset Management] "I think it's really going to be up to management, up to CEO Jack Ma to really deal with competitors and to roll out new ventures, new businesses and new services to consumers to make sure those margins are going to be maintained. So partly investing in Alibaba is really investing in the talent of the management and I do think that you have that here."

But whether or not retail investors in America know who Alibaba is.. the company still sells more than Amazon and eBay combined.

We'll be watching the development of this mammoth listing.

I'm Qian Chen, reporting from CNBC's Asian headquarters.

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