The Hong Kong Stock Exchange accepted the Chinese e-commerce giant’s request, Ali Baba to convert locally traded shares from their current secondary status to primary listing, paving the way for Mainland Chinese investors to trade the shares directly. The expected date for entry into force is the end of 2022, reads the press release issued by the Hong Kong Stock Exchange.
Obtaining “primary” status in Hong Kong would make Alibaba eligible for inclusion in an equity linking program with mainland China.
The stock rose briefly by over 2% in Hong Kong exchanges and then closed at a rise of 0.9% at 89.60 Hong Kong dollars.
“Given the substantial presence of our commercial operations in China and the link between Hong Kong and our main commercial operations in China, we expect the conversion to primary listing will allow us to broaden our investor base and facilitate greater liquidity, and in in particular to expand access to investors based in China and other Asian countries “, Alibaba said in a note.
Alibaba, listed in New York in one of the largest IPOs in recent history
Recall that Alibaba was listed on the New York Stock Exchange in 2014 in the largest IPO of the time, while the secondary listing in the former British colony took place in November 2019.
Almost three years ago, the Chinese internet tech giant began bringing home investors with a secondary listing in Hong Kong.
Last month, Alibaba took advantage of recent rule changes in Hong Kong to request a change in the status of its listing from “secondary” to “primary”.
Just over a week ago, the US Securities and Exchange Commission added the e-commerce giant to a list of US-listed Chinese companies that are at risk of delisting if they fail to meet regulatory requirements. audit within three years. Alibaba said it will work with regulators to maintain its listings in New York and Hong Kong.