Following the announcement of plans for a dual main listing in Hong Kong, Alibaba increases by 6%

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Last Updated on July 26, 2022 by Bitfinsider

After the Chinese internet giant announced it would apply for a dual main listing in Hong Kong, Alibaba’s stock on the Hong Kong exchange surged as high as 6.5 percent on Tuesday before losing some of its gains.

By the end of the trading day, the stock had increased 4.82 percent.

The shares of the tech behemoth are currently listed in Hong Kong, but they are already traded on American and Hong Kong exchanges.

According to a press statement from the firm, the primary listing procedure in Hong Kong is anticipated to be finished before the end of 2022.

Recent rule changes at the Hong Kong Exchange have made it simpler for more corporations to get dual main listings in the Chinese financial center. According to Reuters, Alibaba is the first significant corporation to purportedly benefit from this law reform.

“Strategic” action

According to Ronald Wan, non-executive chairman of Partners Fintech Holdings, the move is “extremely strategic” because the Hong Kong market hasn’t provided Alibaba with as much liquidity as the U.S. market has, he added.

Alibaba will be able to participate in the Shenzhen-Hong Kong Stock Connect, which enables investors in mainland China access to the stock, by having a primary listing in Hong Kong.

Chinese manufacturers of electric vehicles Xpeng and Li Auto are both part of the stock connect program and have dual primary listings in Hong Kong and the United States.

According to historical data, the turnover and velocity of businesses with secondary listings in Hong Kong are significantly lower than those of ADRs in the United States, according to a China Renaissance analysis from January.

American depositary receipts, or ADRs, act as stand-ins for the shares of foreign corporations that are listed on American exchanges.

Wan also stated that despite the ongoing conflict between the United States and China over accounting difficulties, Alibaba is still preparing.

Chinese companies with U.S. listings have been threatened with delisting due to an audit dispute that U.S. and Chinese officials are attempting to address.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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