Alibaba will apply for a dual-primary listing on Hong Kong’s stock exchange, in a move analysts say lays the groundwork to grant mainland Chinese investors access to its shares and help minimise disruption if US regulators force it to delist from Wall Street.
The New York-listed Chinese ecommerce group, which has a secondary listing in Hong Kong, said its board had authorised management to apply for a primary listing on the Hong Kong Stock Exchange and that the process was expected to be completed by the end of 2022.
Having a primary listing in Hong Kong is a requirement for dual-listed Chinese groups to be included in the city’s Stock Connect programme, which allows mainland Chinese investors to trade in a company’s shares. Inclusion can help bolster a stock’s valuation and liquidity. A dual primary listing means Alibaba will be subject to the full rules of Hong Kong’s stock exchange as well as those of New York.