Alibaba Group Holding announced plans to obtain primary listing status on the Hong Kong Exchange, as reported by the company ' s press service, and the Board of Directors authorized management to submit all relevant documents.
," said Alibaba director Daniel Zhang.
In this way, the company will receive a double primary listing on New York exchanges and Hong Kong will sell ordinary shares. The companies stressed that the paper is interchangeable and the holders will be able to choose the desired format of the asset.
The upgrade will allow Alibaba to be included in Stock Connect. This is a cooperation agreement between three key Chinese exchanges on cross-tendering securities. This is supposed to increase the liquidity of Alibaba shares. But it also increases the requirements for issuers: companies are required to disclose financial guarantees to others and a number of other indicators.
Against the news of the second primary listing, Alibaba shares rose by 6.5 per cent, reaching HK$106.1.
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