Alibaba's Hong Kong-listed stock is up 6% after the company announced a dual primary listing. It claims that its Hong Kong IPO will be complete by 2022.
After Announcing its Dual Listing Goals in HK, Alibaba's Shares Rose 6%
After the Chinese internet giant said it would apply for a dual main listing in Hong Kong, Alibaba's Hong Kong-listed shares increased by 6% on Tuesday before losing some of their gains.
The shares of the IT behemoth are now listed in Hong Kong, but they are already traded on American and Hong Kong markets.
The business said in a news release that the primary Hong Kong listing process is expected to be finished by the end of 2022.
Recent rule changes at the Hong Kong Exchange have made it simpler for more corporations to get dual primary listings in the Chinese financial center. According to Reuters, Alibaba is the first significant corporation to benefit from this law reform purportedly.
Alibaba will be able to participate in the Shenzhen-Hong Kong Stock Connect, which enables investors in mainland China access to the stock by having a primary listing in Hong Kong.
Alibaba and Ant Group Cuts 8 Years Tie
Despite this growth, SCMP report that all of Ant Group's senior executives, according to Alibaba Group Holding, have left the partnership structure of the company. This indicates more division between the e-commerce behemoth and its fintech affiliate as the latter waits for Beijing's approval to become a financial holding company.
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Ant Group and Alibaba ended their 2014 data sharing agreement on July 25. According to the company's study, parties would negotiate data sharing agreements "case-by-case and as permitted by current laws and regulations."
Ant reshuffled its board on June 1, adding Laura Cha as an independent director. Yang Xiaolei, an independent director of Hengfeng Bank and a lawyer of a Citic Group affiliate, is an Ant director. The two appointments gave the board four independent directors, or 50%.
Alibaba Cuts Down its Global Expansion Plans to Compete with Amazon
Alibaba's attempt to compete with Amazon by luring US businesses to its e-commerce platform has failed to meet its goals, giving a setback to the Chinese internet giant's global expansion aspirations.
The firm launched Alibaba.com, its business-to-business e-commerce website, three years ago in the US to attract more than one million local businesses and compete with rivals like Amazon, which offers a similar platform for wholesalers worldwide.
The issues at Alibaba's US business-to-business arm come as the company expands internationally. At the same time, its domestic operations continue to be negatively impacted by Beijing's internet crackdown, the weakening economy, and emerging rivals.
Since its start, Alibaba.com has had trouble keeping US vendors, partly because it cannot afford to match the prices of international shops.
According to former and current employees, most US merchants abandon their memberships after a year. According to one person, Alibaba.com has now reduced its target of signing up a million US small businesses to only 2,000 yearly.
As a result of platform underperformance, reports of bullying from top management, and long workdays, at least 35 employees at Alibaba.com in New York have quit their employment as of this year, accounting for more than half of the team, according to three people with knowledge of the US office.
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