Alibaba is expected to complete dual primary listing in Hong Kong by end August, 2024

According to AAStocks, Morgan Stanley recently released a research report regarding Alibaba (9988.HK). In the report, Morgan Stanley stated that Alibaba is expected to complete its dual primary listing on the Hong Kong Stock Exchange by the end of August, 2024. This is potentially a positive development for Alibaba investors for the following reasons:

• Dual Primary Listing: BABA-SW is on track to complete its dual primary listing by the end of August 2024. This means it will have a primary listing in both Hong Kong and the United States. Currently, it has a primary listing on the NYSE and a secondary listing on the HKSE. With the threat of an escalating trade war and irrational punitive measures by the US authorities, the additional primary listing in Hong Kong will provide a much-needed safe haven from the brewing geo-political storm, affording investors some protection in the event of delisting from the NYSE.
• Southbound Stock Connect: After the dual listing, there’s a strong likelihood that Alibaba (9988.HK) will be included in the Southbound Stock Connect. This much awaited event could happen as early as September this year, opening up a new avenue for mainland Chinese investors to invest in the tech stock.
• The inclusion of Alibaba in the Southbound Stock Connect is expected to usher in fresh funds from mainland China, providing additional liquidity and a much needed boost to the stock price.

Note: The regulatory approach to primary and secondary listings differs. The primary listing location, also known as the home exchange, will fully impose its listing rules on the company. In contrast, a company that is secondary-listed on an exchange, also known as the host exchange, is typically regulated by the home exchange. In addition to the admission criteria, the host exchange will impose obligations on the company regarding the disclosure of material information.
Source: The Edge Singapore