Alibaba is getting Hong Kong's support for a primary stock listing

Alibaba is getting Hong Kongs support for a primary stock listing

August 10, 2022: -Chinese e-commerce firm Alibaba creates Hong Kong as a “primary” listing for its shares, paving the way for mainland China investors to trade the stock directly.

On Monday, the Hong Kong Stock Exchange acknowledged Alibaba’s application to convert locally traded shares to primary listing from the current secondary status, according to a filing.

It is expected to take effect by the end of 2022, the document said. Gaining primary status in Hong Kong would make Alibaba suitable for inclusion in the stock connect schedule with mainland China.

The stock briefly climbed over 2% in Hong Kong trading Tuesday morning.

“We expect that the Primary Conversion will allow us to broaden our investor base, facilitate incremental liquidity, and expand access to China- and different Asia-based investors,” Alibaba said in Monday’s filing.

Alibaba was listed on the New York Stock Exchange in 2014 in the biggest IPO.

Nearly three years ago, the Chinese internet tech firm started taping investors nearer to home with a secondary listing in Hong Kong.

In the previous month, Alibaba took benefit of current rule changes in Hong Kong to use for a dual primary listing.

Just over a week back, the U.S. Securities and Exchange Commission added Alibaba to a list of U.S.-listed Chinese businesses that face delisting if they cannot meet audit requirements within three years. Alibaba said it would work with regulators to maintain its listings in New York and Hong Kong.

Posts You Might Like
Summary
Alibaba is getting Hong Kong's support for a primary stock listing
Article Name
Alibaba is getting Hong Kong's support for a primary stock listing
Description
Chinese e-commerce firm Alibaba creates Hong Kong as a “primary” listing for its shares, paving the way for mainland China investors to...
Author
Publisher Name
The Women Leaders
Publisher Logo