Alibaba’s dual primary listing in Hong Kong does more than improve trading liquidity

A primary listing for the e-commerce company in Hong Kong would not only expand Alibaba’s investor base, but also make the tech giant’s share price a better risk barometer for domestic sentiment in China.

Alibaba’s decision to file for a primary listing in Hong Kong comes three years after issuing secondary shares in 2019 and eight years since its initial public offering in New York. Though transitioning to a primary listing entails additional compliance costs and management oversight compared to a secondary classification, success would enable the company’s shares to become eligible for Stock Connect, linking its equity to the Shanghai and Shenzhen exchanges.

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