Alibaba Group has divulged that at a shareholder meeting, they have approved a plan to upgrade the listing status of the company in the Hong Kong stock market from a Secondary Listing to a Dual-Primary Listing alongside its New York Stock Exchange-listed shares.
Alibaba entered the New York Stock Exchange market in 2014 and initially did not pursue a listing in Hong Kong due to regulatory constraints. However, in 2019, the company initiated trading in the Hong Kong market but as a Secondary Listing, restricting direct purchase of Alibaba shares for investors in China through the Stock Connect program. Hence, the proposal to transition to a Dual Listing format was put forward to enhance flexibility for shareholders.
Alibaba has stated that the Dual status of the shares in the Hong Kong market will come into effect starting from August 28 onwards.
Source: South China Morning Post
TLDR: Alibaba Group shareholders approved upgrading the company’s Hong Kong stock market listing to a Dual-Primary Listing, increasing flexibility for investors.
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