Time for Alibaba’s dual primary listing in Hong Kong uncertain – Credit Suisse

 

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While the market is anticipating that Alibaba Group will be included in the “Hong Kong Stock Connect scheme” once its application for a dual primary listing status is approved, regulatory uncertainties could cloud the outlook for the company, Credit Suisse said in a note on Wednesday.

Alibaba said Tuesday that it would apply for a primary listing in Hong Kong and expects the listing to be completed by the end of 2022, making it a dual primary listed company on the Hong Kong Stock Exchange and the New York Stock Exchange.

Meituan and Xiaomi took 419 days and 543 days, respectively, from listing to being included in the Southbound trading, the bank said. While the two stocks were not dual-listed, they were the first special case stocks with WVR structure to be permitted to join the Southbound trading, the bank added.

Credit Suisse noted that investors have been anticipating the Southbound inclusion of Alibaba as a potential catalyst for some time, but stated that relevant regulatory uncertainties have rendered the concrete timing of such inclusion uncertain.