Alibaba Group (NYSE:BABA), China’s biggest e-commerce platform, announced plans to become a dual-primary listed company on New York Stock Exchange (NYSE) and Hong Kong Stock Exchange (HKSE).
The company, which currently has a secondary listing in Hong Kong and primary listing in New York, said it will apply for a primary listing on the HKSE, with the dual listing expected to be completed by year-end.
In addition to entrenching Hong Kong's position as an alternative to US markets, Alibaba's primary listing in HK will give investors in China access to the country's biggest e-commerce company for the first time.
Alibaba's decision comes as Beijing and Washington intensify scrutiny over Chinese companies' listings, as well as a crackdown in China that left Alibaba with a US$2.8bn fine and cancelled an initial public offering (IPO) for its Ant Group affiliate.
Ant Group is now looking to raise at least US$34.4bn in what will be the world's biggest-ever IPO in both Shanghai and Hong Kong.
Alibaba's chief executive Daniel Zhang said the company is seeking another primary listing venue to foster a broader and "more diversified investor base".
"Hong Kong and New York are both major global financial centers, with shared characteristics of openness and diversity," Zhang said in a statement.
"Hong Kong is also the launch pad for Alibaba’s globalisation strategy, and we are fully confident in China’s economy and future."
The listing will give Chinese investors direct access to one of the country's most storied names, which made waves in 2014 when it launched in NY as the largest IPO in history, though it completed a secondary listing in HK in November 2019.
Alibaba's move could reportedly encourage peers to follow suit given American regulators' threats to kick Chinese companies off US bourses unless they comply with auditing requirements.
Once the darling of many technology stock investors, Alibaba's stock price has plummeted following Beijing's crackdown on China's technology industry.
Alibaba's New York stock price has fallen 47% in the past year. and closed at US$101.06 before the announcement.