A filing Monday showed Chinese web tech giant Alibaba is one other step closer to letting mainland Chinese investors trade its shares directly.
Kuang Da | Jiemian News | Visual China Group | Getty Images
BEIJING — Chinese e-commerce giant Alibaba is making Hong Kong a “primary” listing for its shares, paving the best way for mainland China investors to trade the stock directly.
The Hong Kong Stock Exchange acknowledged Monday Alibaba’s application to convert locally traded shares to primary listing from the present secondary status, based on a filing.
It is anticipated to take effect by the top of 2022, the document said.
Gaining primary status in Hong Kong would make Alibaba eligible for inclusion in a stock connect program with mainland China.
The stock briefly rose greater than 2% in Hong Kong trading Tuesday morning.
“We expect that the Primary Conversion will allow us to broaden our investor base and facilitate incremental liquidity, and particularly expand access to China- and other Asia-based investors,” Alibaba said in Monday’s filing.
Alibaba listed on the Recent York Stock Exchange in 2014 in the most important IPO at the moment.
Nearly three years ago, the Chinese web tech giant began to tap investors closer to home with a secondary listing in Hong Kong.
Last month, Alibaba took advantage of recent rule changes in Hong Kong to use for a dual primary listing there.
Just over every week ago, the U.S. Securities and Exchange Commission added Alibaba to a listing of U.S.-listed Chinese firms that face delisting if they can not meet audit requirements inside three years. Alibaba said it will work with regulators to take care of its listings in Recent York and Hong Kong.