Alibaba to apply for dual primary listing in Hong Kong

As the first significant business to benefit from a rule change allowing high-tech Chinese companies with dual class shares to seek dual primary listings in Hong Kong, Alibaba will submit an application for a primary listing in Hong Kong and maintain its U.S. listing. The e-commerce giant's decision, which was made public on Tuesday, comes as Washington and Beijing increase their scrutiny of Chinese companies' listings, as well as following a devastating regulatory crackdown in China that cost Alibaba a $2.8 billion fine and derailed an IPO of its affiliate Ant.

At the start of Hong Kong trading, Alibaba's stock increased 4% as analysts predicted that the change would make it simpler for mainland Chinese investors to purchase shares through the Stock Connect, a connection to the Hong Kong stock exchange. The shares were up 5% at 03:03 GMT, while the Hong Kong benchmark was up 1.2 %. Alibaba, which has had a secondary listing on the Hong Kong Stock Exchange since 2019, said it anticipates finishing the primary listing by the end of 2022. The dual listing, according to Chief Executive Daniel Zhang, would encourage a "wider and more diversified investor base."