Hong Kong’s financial market could see a much needed boost with Alibaba planning to add a primary listing on the city’s exchange.
Alibaba is planning to add a primary listing on the Hong Kong bourse, according to a statement by the e-commerce giant, with expectations to complete by the end of 2022.
«Hong Kong is also the launch pad for Alibaba's globalization strategy, and we are fully confident in China's economy and future,” said Alibaba CEO Daniel Zhang, adding that the additional listing in the city would allow the firm to foster a «wider and more diversified investor base».
Alibaba made its market debut on the New York Stock Exchange in September 2014 before following up with a secondary listing on Hong Kong’s exchange in 2019.
Delisting Risk
Meanwhile, Chinese firms listed in the US face increasing risk as authorities in the two countries continue to negotiate an ongoing audit dispute. Securities and Exchange Commission chair Gary Gensler has repeatedly spoken about the progress made in the talks, albeit seemingly limited.
Separately, Alibaba will become the first major company to take advantage of new rules on the Hong Kong exchange which allow innovative Chinese companies with weighted voting rights – better known as variable interest entities (VIE) – to carry out dual primary listings in the city. This will also provide a much needed boost for the exchange which has seen funds raised plunge by more than 90 percent year-to-date, according to public data, in the midst of weak market sentiment.
