Alibaba’s Hong Kong primary listing plan can open the doors to China’s 210 million investors
- Tech behemoth seeks a dual primary listing in Hong Kong to tap the southbound capital flows from mainland China investors, says Alibaba co-founder Joe Tsai
- JPMorgan Chase says Alibaba’s shares could be included in the Stock Connect scheme by September.
Alibaba Group Holding is paving the way for China’s 210 million investors to buy a stake in the e-commerce giant as it pushes ahead with a plan for a primary listing of its shares in Hong Kong, Asia’s third-largest stock market.
The process, expected to be completed by end-August, is a prerequisite to be included in the cross-border exchange link programme and will allow the US$400 billion company to leverage on its visibility and investor familiarity in the world’s second-largest economy.
The Hangzhou-based company, whose shares are not listed on mainland China, disclosed a progress report on the plan while unveiling its financial results for the financial year that ended in March with JPMorgan Chase saying Alibaba’s shares could be included in the Stock Connect scheme by September.
“The main reason for us to proceed with the dual primary listing is because we want to tap into the southbound capital flows through the Stock Connect programme,” said Joe Tsai, co-founder and chairman of Alibaba, in an interview referring to the buying and selling of shares in Hong Kong by mainland investors through Stock Connect. A separate northbound investment channel allows global investors to access the vast domestic pool of China’s yuan-denominated stocks.
“All our users and customers are in China. They have intimate familiarity with our services and products and they should get access to the stock and participate in our growth.”