Quotes: Reaction to Alibaba seeking dual primary listing in Hong Kong

Sun Hung Kai Properties

26/07/2022 06:11

HONG KONG, July 26 (Reuters) - The following are quotes from
analysts and lawyers after Alibaba  9988.HK  said it would apply
for a primary listing in Hong Kong and keep its U.S. listing,
the first big firm to take advantage of a rule change in the
Asian financial hub.  urn:newsml:reuters.com:*:nL1N2Z700O
    
    IVY WONG, CAPITAL MARKETS PRACTICE ASIA PACIFIC CHAIR, BAKER
McKENZIE, HONG KONG:
    "Given the geopolitical tensions, new listing regimes for
technology companies and cross-border capital market
opportunities including various stock connects in recent years,
dual listings and homecoming listings have been on the agenda
for many U.S. listed companies with substantial operations in
China. 
    "It enables them to manage any potential regulatory risks
and also gain broader investors access."
    
    NAN LI, PROFESSOR OF FINANCE, SHANGHAI JIAOTONG UNIVERSITY,
SHANGHAI:
    "Given the increasing uncertainty due to potential
geopolitical conflicts, the COVID-19 pandemic and changes in
financial regulations, it is harder for the U.S. investors to
evaluate Alibaba, hence it makes sense for Alibaba to get closer
to investors in China, who have information advantage and less
ambiguity about the fundamental value of Alibaba."
    
    KENNY NG, ANALYST, EVERBRIGHT SUN HUNG HAI, HONG KONG:
    "If Alibaba is accepted by HKEX for a dual primary listing
in Hong Kong, it will reflect to some extent that the mainland's
supervision of Alibaba may be eased, which will boost investor
confidence in Alibaba. 
    "Chinese companies currently listed in the United States are
facing regulatory pressure in the United States, and Alibaba's
dual primary listing will help it ease the potential pressure of
delisting in the United States in the future."
    
    JOHN CHOI, EXECUTIVE DIRECTOR, DAIWA CAPITAL MARKETS, HONG
KONG:
    "I wouldn't quickly jump to the conclusion that this could
be a precursor for some ADRs but I do believe it will be a
natural move for many of the eligible secondary listed stocks in
Hong Kong to move on and apply for the primary listing. This
will eventually broaden the investor base and also increase the
trading volume for the stock."
    
    CHELSEY TAM, SENIOR ANALYST, MORNINGSTAR, HONG KONG:
    "I think more ADRs may follow suit as it allows them to tap
the mainland (China) investor base and reduce risks in delisting
in the U.S."
    
    BRIAN FREITAS, FOUNDER, PERISCOPE ANALYTICS, WHO PUBLISHES
ON SMARTKARMA, AUCKLAND:
    "Inclusion in Stock Connect will give mainland investors
access to Alibaba. Given the name recognition and the correction
in the stock price over the last year, there is bound to be a
lot of interest in the stock."

 (Reporting by Scott Murdoch in Hong Kong and Josh Horwitz in
Shanghai; Editing by Sumeet Chatterjee and Kenneth Maxwell)
 ((Scott.Murdoch@thomsonreuters.com;))