Shares in Alibaba.com, the world's biggest online marketplace for international and domestic Chinese trade, more than doubled on its debut in Hong Kong yesterday, making it Asia's second-largest Internet company by market value after Yahoo! Japan Corp.

Alibaba, founded and chaired by Jack Ma, a former schoolteacher, in 1999, is trading at about 140 times next year's estimated earnings as shares rocketed from the initial offering price of HK$13.50 (83p) to HK$35.75 (£2.21).

That values the eastern China-based company at about $23.3 billion (£11.2 billion) and reflects the voracious appetite for China-related stocks, despite global uncertainty caused by the US sub-prime mortgage-related crisis.

Yesterday, PetroChina became the world's first $1 trillion company on its first day of trading.

Alibaba raised $1.49 billion through its initial public offering and was oversubscribed 150-fold.

It is the biggest technology IPO since Google raised $1.66 billion in 2004.

Alibaba offers small to medium-sized Chinese manufacturers a way to sell their products across the world.

The website, which has both Chinese and English versions, offers free listings for suppliers and buyers.

Revenue is derived from members who pay for additional services such as search listings or factory inspections.

Alibab.com reported earnings of 295.2 million yuan (£19 million) in the first six months of this year.

Speaking to reporters after a listing ceremony, Mr Ma said: “The price set is reasonable. I said it two weeks ago, and today’s performance has proven me right.”

He added that the price could rise even higher.

He said: “Some investors who had missed out on Google’s IPO don’t want to miss out on Alibaba’s.”

Andrew Clarke, a Société Générale Securities trader in Hong Kong, told Reuters: “I’m not convinced. It’s massively overpriced. I’d rather go buy Exxon at 15 times earnings.”

Alibaba.com is part of the Alibaba Group, which includes Yahoo!'s China operation and Taobao.com, China's biggest online auction site.

Yahoo! holds a 39 per cent stake in the parent company.

Other investors in the IPO included Cisco Systems and Hon Hai Precision Industry, of Taiwan.

The company started with fewer than 20 staff and now has 4,400 employees.

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