Alibaba applies for the two major listing in New York, Hong Kong, and is expected to be completed by the end of the year

Picture source: Oriental IC

Blue Whale TMT Channel July 26. Alibaba Group issued an announcement today that the board of directors has authorized the Group's management to submit an application to the Hong Kong Joint Exchange and will add Hong Kong to the main list of listed listings. After the Hong Kong Stock Exchange completed the audit process, Alibaba will double the main listing on the main board of the Hong Kong Stock Exchange and the New York Stock Exchange.

Alibaba Group announced that the relevant process is expected to be completed by the end of 2022. Since then, Alibaba's depository stocks listed in the United States and ordinary shares listed in Hong Kong can continue to be converted to each other. Investors can continue to choose to hold Alibaba shares in one form.

Ali and the Hong Kong Stock Exchange actually have a relationship. As early as November 2007, the B2B company of Ali landed on the Hong Kong Stock Exchange. However, the financial crisis broke out in 2008 caused the company's stock price to plummet. In addition, the B2C and C2C business increased rapidly, and the B2B business gradually lost its strategic value. In the end, Ali's B2B company chose a privatization to delist in 2012.

In 2014, Alibaba planned to go public as a whole, hoping to go public in Hong Kong with a partnership system of different rights, but at that time, the Hong Kong Stock Exchange failed to find a way to accept different power structures of the same shares in time. In the end, Ali Yuan went to the United States and successfully landed on the New York Stock Exchange to raise a scale of $ 25 billion in funds to become the largest IPO at that time at that time.

After missing Ali, the Hong Kong Government, the Hong Kong Stock Exchange, and investors all realized that the same share of the same shares was popular among the new economic companies of the Internet, including the former Hong Kong Secretary of Finance Liang Jinsong and the CEO of the Hong Kong Stock Exchange Li Xiaoga Several officials have regretted not being listed in Hong Kong.

In order to avoid losing more market opportunities similar to Alibaba, in 2018, the Hong Kong Stock Exchange launched the reform of the listing system, allowing double -equity structure companies to go public, and announced that innovative industry companies listed overseas to list Hong Kong as the standard for Hong Kong as the second place to listed. Essence This has created more favorable conditions for the listing of a large number of domestic Internet companies including Ali. In November 2019, Alibaba was listed for the second time in Hong Kong, and New York was still the main place of listing in Ali.

Alibaba said that since the company's second listing in Hong Kong, the company's public circulation in the Hong Kong Stock Exchange has increased significantly. For the six months ended June 30, 2022, the average daily transaction volume of the company's shares in the Hong Kong market is about $ 700 million, and the average daily transaction volume of the company's shares in the US market is about 3.2 billion US dollars. This time, the newly added Hong Kong to the market as the main list of listings, the success of the water at the technical level, is also in line with the market expectations of the market for a period of time.

Since the beginning of this year, the two major ways to go public are becoming more and more choices for Chinese stocks to return to Hong Kong. As of now, nine of the nine companies including Zhihu, Shell, Xiaopeng, and ideal have been listed in the United States and Hong Kong. Brokerage analysts said that under the dual major listing plan, the company is more hoped to be quickly included in the index and Hong Kong Stock Connect transactions.

Western Securities also pointed out when the double listing of stocks in the analysis that although the stocks of the two markets after the two major listings cannot cross the market, double listed companies in Hong Kong have the opportunity to include Hong Kong stocks. ability. In addition, the market can focus more on the fund's fundamental level, and in the long run, the positive significance is significant.

Zhang Yong, chairman and chief executive officer of Alibaba Group's board of directors, said that the purpose of this decision is to make more extensive and diverse investors, especially Alibaba digital ecological participants in other parts of China and Asia -Pacific Essence

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