Alibaba To Apply For Primary Listing In Hong Kong; Stock Up

(RTTNews) - Shares of Alibaba Group Holding Ltd. (BABA) were gaining around 6 percent in Hong Kong trading after the Chinese e-commerce giant said it will apply for a primary listing in Hong Kong.

In a statement, the company said it will become dual-primary listed on the New York Stock Exchange and Hong Kong Stock Exchange upon completion. The primary listing process is expected to complete prior to the end of 2022.

Alibaba currently maintains a secondary listing on the Main Board of Hong Kong Stock Exchange.

The move reportedly follows a rule change that allows high-tech Chinese companies with dual class shares to seek dual primary listings in Hong Kong.

With the company's substantial presence in Greater China, Alibaba expects that a dual-primary listing status would foster a wider and more diversified investor base to share in Alibaba's growth and future, especially from China and other markets in Asia

The company said its ADSs listed in the U. S. and the shares listed in Hong Kong are fungible. Investors can continue to choose to hold their shares in the form of ADSs or ordinary shares.

Alibaba Group Chairman and Chief Executive Officer Daniel Zhang, said, "Hong Kong and New York are both major global financial centers, with shared characteristics of openness and diversity. Hong Kong is also the launch pad for Alibaba's globalization strategy, and we are fully confident in China's economy and future."

In Hong Kong, Alibaba shares were trading at HK$105.20, up 5.62 percent.