Alibaba group. People’s visual information map
on July 26, Alibaba Group announced that the board of directors had authorized the group’s management to submit an application to the stock exchange of Hong Kong to add Hong Kong as a major listing place. Zhang Yong, chairman and CEO of Alibaba group, said that the purpose of this decision was to enable a wider range of diverse investors, especially Alibaba digital ecosystem participants, to share Alibaba The growth and future of Pakistan< Br > < div class= "contheight" > < / div > Alibaba is currently listed on the second main board of the Hong Kong stock exchange. It will apply for Hong Kong as the main listing place in accordance with the Hong Kong listing rules, which is expected to take effect before the end of 2022< Br > < div class= "contheight" > < / div > after completing the audit procedures in the Hong Kong stock exchange, alibaba will be listed on the main board of the Hong Kong Stock Exchange and the New York Stock Exchange< Br > < div class= "contheight" > < / div > after the implementation of Dual Major listing, it is expected that international investors will allocate more Alibaba Hong Kong shares, which may inject new liquidity into the Hong Kong stock market. At the same time, Alibaba Hong Kong stocks are also expected to meet the qualification of Hong Kong stock connect, which may create more convenience for mainland investors to directly invest in Alibaba< Br > < div class= "contheight" > < / div > the analysis generally believes that for Alibaba and zhonggai shares, Dual Major listing is the best business choice to comply with the current pattern and market expectations and ensure the interests of investors< Br > < div class= "contheight" > < / div > Alibaba’s B2B business was listed on the Hong Kong Stock Exchange in 2007. In 2014, when Alibaba planned to go public as a whole, the Hong Kong stock exchange was also the first destination to be considered, and relevant roadshows were carried out. However, due to the restrictions of relevant regulations at that time, Ali finally switched to the New York Stock Exchange for listing< Br > < div class= "contheight" > < / div > in 2014, on the eve of listing in the United States, Alibaba still publicly said: if conditions permit in the future, we will return to the domestic capital market and share the company’s growth with domestic investors< Br > < div class= "contheight" > < / div > in 2018, the Hong Kong Stock Exchange launched the reform of the listing system, which also created more favorable conditions for a large number of domestic Internet companies, including Alibaba, to list in Hong Kong. In November 2019, Alibaba was listed in Hong Kong for the second time, and New York is still the main listing place of Alibaba< Br > < div class= "contheight" > < / div > since its listing in Hong Kong in 2019, most of Alibaba’s outstanding shares have been transferred to Hong Kong for registration. According to statistics, in the six months ended June 30, 2022, the average daily trading volume of Alibaba Group shares in the Hong Kong market was about $700million, and the average daily trading volume in the U.S. market was about $3.2 billion. China and the Asia Pacific region are the main markets for Alibaba’s business, and Alibaba has always been highly concerned by Chinese and Asia Pacific funds. The addition of Hong Kong as the main listing place of Alibaba this time also meets the expectations of the market in the past period of time< Br > < div class= "contheight" > < / div > after the listing system reform of the Hong Kong Stock Exchange in 2018, more and more Chinese technology companies choose to list in the United States and Hong Kong. However, in terms of trading mechanism design, most of them take the United States as the main listing place, and most of them adopt the “secondary listing” mode when listing in Hong Kong< Br > < div class= "contheight" > < / div > in recent times, Dual Major listing is becoming the mainstream mode for the return of China concept shares to Hong Kong. Up to now, nine Chinese companies have achieved Dual Major listings in the United States and Hong Kong, including Zhihu, Beihai, Xiaopeng and ideal< Br > < div class= "contheight" > < / div > it is understood that after Alibaba’s Dual Major listing in Hong Kong and New York, the depositary shares listed in the United States and ordinary shares listed in Hong Kong can still continue to be converted into each other, and investors can continue to choose to hold Alibaba shares in one of these forms. This will attract more international capital to transfer to Hong Kong< Br > < div class= "contheight" > < / div > analysts believe that after the implementation of Dual Major listing, the pricing of Chinese stocks, US stocks and Hong Kong stocks are independent of each other, which is expected to improve the pricing power of the Hong Kong stock market. The increase in liquidity and pricing capacity will help Hong Kong further consolidate and strengthen its position as an international financial center< Br > < div class= "contheight" > < /div> it is worth noting that the choice of Dual Major listing by China concept companies does not affect their listing status in the United States. For a long time, overseas funds have played a significant role in the development of Chinese technology enterprises. The listing of a number of Chinese companies such as Alibaba in the United States has also enhanced global capital’s understanding of Chinese enterprises and the Chinese market.