Alibaba Says Primary Listing in Hong Kong Is Approved

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Alibaba
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the Chinese e-commerce giant, said its application for a primary listing in Hong Kong has been approved.

In a filing,

Alibaba

(ticker: BABA) said the effective date of converting its primary listing to Hong Kong is expected “prior to the end of 2022.” When complete it will become a dual-primary listed company in both Hong Kong and New York, where its American depositary shares are traded.

The move will allow Chinese investors to trade directly in the stock, and Chief Executive Daniel Zhang has said it will foster a wider and more diversified investor base.

In the filing Alibaba stated: “We have made an application to the Hong Kong stock exchange to change our secondary listing status on the Main Board of the Hong Kong stock exchange to a primary listing.

“On August 8, 2022, the Hong Kong stock exchange issued its Primary Conversion Exchange Acknowledgement pursuant to the Change of Listing Status Guidance Letter. The effective date of our Primary Conversion is expected to be prior to the end of 2022.”

Alibaba shares traded in Hong Kong closed up 0.9%. The U.S.-listed shares rose 0.8% to $91.56 early Tuesday; they have declined 23.5% this year.

In a separate filing, the company has let more than 9,000 workers go between April and June, Bloomberg reported, citing Alibaba’s lackluster performance.

Write to Rupert Steiner at [email protected]