Alibaba has also decided to make a “primary list” equivalent to the U.S. stock market in Hong Kong.
Currently, Alibaba has “major listing” on the New York stock market and “secondary listing” on the Hong Kong stock market. However, the Hong Kong stock market also decided to be double listed by listing major stocks equivalent to the U.S. stock market.
Alibaba CEO Daniel Zhang said in a statement on the 26th, “We applied for a double listing on the Hong Kong stock market,” adding, “The double listing will lay a wider and diverse investor base.”
Alibaba plans to complete the related process by the end of 2022.
Alibaba was listed on the New York Stock Exchange in September 2014 and entered the Hong Kong Stock Exchange as the second listing in 2019.
Currently, secondary listed companies cannot incorporate “Ganggu Tong” (Hong Kong stock market investment system of mainland Chinese investors), but listed companies can apply for Ganggu Tong. If it is incorporated into Ganggu Tong, investors in mainland China can easily buy and sell Hong Kong-listed stocks.
Bloomberg predicted, “Alibaba’s application for a double listing will be a great boon for Alibaba, which has suffered from the slowing Chinese economy and strong Chinese government regulations for more than a year.”
Alibaba’s stock price has soared more than 5% on the Hong Kong stock market as the news broke. With Alibaba soaring, the Hang Seng index is also rising 1.5%.