By the end of 2022, Alibaba is anticipated to complete its main listing on the Hong Kong Stock Exchange, making it a dual-primary listed corporation on the New York Stock Exchange and the Hong Kong Stock Exchange.
At a time when Beijing is pressuring internet giants to share their riches with the public, Alibaba [HKG: 9988], the largest e-commerce business in the world by sales, revealed plans on Tuesday to modify the status of its shares sold in Hong Kong, making them more available to Chinese investors.
Alibaba’s CEO Daniel Zhang said that the company was looking for another major listing venue in order to cultivate a “wider and more diverse investor base.”
According to a statement from Zhang, “Hong Kong and New York are both significant global financial capitals, with similar qualities of openness and variety.” Alibaba’s worldwide plan is also being launched from Hong Kong, and we have complete faith in China’s economy and future.
Through the Stock Connect investment route, which enables mainland Chinese investors to purchase equities listed in Hong Kong and vice versa for Hong Kong and international investors, the move will open up Alibaba’s shares to millions of mainland Chinese investors.
Alibaba’s move to pursue a main listing in Hong Kong also coincides with U.S. authorities’ warning to delist Chinese firms with American listings if they don’t comply with auditing standards, which in turn caused a selloff of Chinese equities with American listings.
The company, which has its headquarters in Hangzhou, completed a secondary listing in Hong Kong in November 2019. Its initial public offering in New York, which took place in September 2014, was the largest at the time.
It was once the darling of many technology stock investors, but since Beijing’s regulatory assault on China’s technology sector, its stock price has collapsed.
Alibaba’s New York stock price has decreased by 47% during the last year. Its shares ended Monday at $101.06 prior to the news.