Alibaba joins China’s Stock Connect Scheme

China’s Shanghai and Shenzhen stock exchanges will include e-commerce giant Alibaba Group in their Stock Connect cross-border investment scheme starting on Tuesday, according to separate fillings on Monday.

The move will allow mainland Chinese investors to trade Alibaba shares through the Hong Kong stock exchange. Alibaba’s shareholders previously approved the upgrade of its Hong Kong listing to primary status, which is expected to attract significant investment from mainland China.

Alibaba has emphasised that this transition does not involve issuing new shares or raising additional funds.

In April, China’s securities regulator announced plans to facilitate Hong Kong listings for leading Chinese companies and expand the Stock Connect scheme in order to enhance Hong Kong’s status as a “global financial centre”.

In April, China’s securities regulator announced plans to facilitate Hong Kong listings for leading Chinese companies and expand the Stock Connect scheme. This is part of the government’s efforts to enhance Hong Kong’s status as a “global financial centre.”

Attribution: Reuters