Alibaba gets Hong Kong’s approval for a primary stock listing

A submitting Monday confirmed Chinese web tech big Alibaba is one other step nearer to letting mainland Chinese traders commerce its shares instantly.

Kuang Da | Jiemian News | Visual China Group | Getty Images

BEIJING — Chinese e-commerce big Alibaba is making Hong Kong a “primary” listing for its shares, paving the way in which for mainland China traders to commerce the stock instantly.

The Hong Kong Stock Exchange acknowledged Monday Alibaba’s application to transform domestically traded shares to primary listing from the present secondary standing, according to a filing.

It is anticipated to take impact by the top of 2022, the doc stated.

Gaining primary standing in Hong Kong would make Alibaba eligible for inclusion in a stock join program with mainland China.

The stock briefly rose greater than 2% in Hong Kong buying and selling Tuesday morning.

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

Alibaba listed on the New York Stock Exchange in 2014 within the largest IPO at the moment.

Nearly three years in the past, the Chinese web tech big started to faucet traders nearer to residence with a secondary listing in Hong Kong.

Last month, Alibaba took benefit of current rule adjustments in Hong Kong to use for a twin primary listing there.

Just over a week in the past, the U.S. Securities and Exchange Commission added Alibaba to a listing of U.S.-listed Chinese firms that face delisting if they can’t meet audit necessities inside three years. Alibaba stated it might work with regulators to take care of its listings in New York and Hong Kong.

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