alibaba (BABA34), the Chinese e-commerce giant, revealed on Tuesday, 26, plans to seek a primary listing of its shares in Hong Kongat a time when Chinese companies face increasing regulatory pressure in both Asia and the US.
The announcement comes at a time when China and the US disagree on audits of Chinese companies listed on US territory.
More than 250 Chinese companies, including Alibaba itself, face the possibility of going private in the USA if the two countries do not reach an agreement for US regulators to inspect audit documents from Chinese firms.
The new primary listing in Hong Kong, which Alibaba expects to complete by the end of this year, will also pave the way for the company’s shares to become more accessible to mainland investors.
Alibaba debuted on New York Stock Exchange (NYSE) in 2014, after what was so far the largest initial public offering (IPO) of shares ever held, and will maintain the listing. In 2019, the company obtained a secondary listing in Hong Kong.
Alibaba’s US stock is much more liquid. In the first half of the year, the company’s average daily trading volume in New York was around US$3.2 billion, compared to US$700 million in Hong Kong. With information from Dow Jones Newswires.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
