Alibaba to add primary listing in Hong Kong

STORY: Alibaba plans to add a primary listing in Hong Kong on top of its New York presence.

The Chinese e-commerce giant said on Tuesday it expects the listing to be completed by the end of 2022.

The move would make Alibaba the first major company to take advantage of a new rule change in Hong Kong that makes dual primary listings easier, aimed at drawing high-tech Chinese companies to the financial hub.

In a statement, Alibaba CEO Daniel Zhang said the company is pursuing the dual listing to foster a "wider and more diversified investor base."

Zhang wrote, "Hong Kong is also the launch pad for Alibaba’s globalization strategy, and we are fully confident in China’s economy and future."

Alibaba floated its shares on the New York Stock Exchange in September 2014, marking what was at the time the largest IPO in history.

It then completed a secondary dual listing in Hong Kong in November 2019.

The change to a primary dual listing comes as both Washington and Beijing sharpen scrutiny over Chinese companies' listings.

And against the backdrop of an audit dispute between China and the United States, which is threatening to kick out hundreds of Chinese companies listed in New York.

Analysts say, with a primary listing in Hong Kong, Alibaba can gain more mainland China investors, who can readily access the shares via a link to the Hong Kong exchange known as the Stock Connect.

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