Alibaba gets Hong Kong’s approval for a primary stock listing

BEIJING — Chinese e-commerce giant Alibaba is making Hong Kong a “primary” listing for its shares, paving the way for mainland China traders to trade the stock immediately.

The Hong Kong Stock Trade acknowledged Monday Alibaba’s application to change domestically traded shares to main listing from the present secondary position, according to a filing.

It is expected to take effect by the close of 2022, the doc explained.

Attaining main status in Hong Kong would make Alibaba eligible for inclusion in a inventory join program with mainland China.

The inventory briefly rose a lot more than 2% in Hong Kong trading Tuesday morning.

“We anticipate that the Major Conversion will make it possible for us to broaden our trader base and aid incremental liquidity, and in distinct increase obtain to China- and other Asia-based mostly traders,” Alibaba claimed in Monday’s filing.

Alibaba stated on the New York Inventory Exchange in 2014 in the most significant IPO at that time.

Virtually a few a long time in the past, the Chinese net tech huge began to tap buyers nearer to dwelling with a secondary listing in Hong Kong.

Last month, Alibaba took edge of current rule variations in Hong Kong to utilize for a twin principal listing there.

Just about a 7 days in the past, the U.S. Securities and Exchange Commission extra Alibaba to a list of U.S.-listed Chinese corporations that face delisting if they simply cannot fulfill audit necessities inside 3 yrs. Alibaba said it would function with regulators to retain its listings in New York and Hong Kong.