Alibaba Group Holding will complete on Wednesday (August 28) its long-delayed conversion to a primary listing from secondary status on the Hong Kong Stock Exchange. The move could be as big a deal for the city as the e-commerce juggernaut itself.
Hong Kong Exchanges and Clearing Limited is coming off a barnburner of a quarter. The April-June period was its best on record as stock trading and initial public offerings restored the bourse’s global financial hub mojo. The globe’s fourth-largest stock market saw net profits surge 9% to HK$3.16 billion (US$405 million), or HK$2.49 per share.
The Alibaba move could provide an additional tailwind. Generally speaking, one company rarely, if ever, makes or breaks an exchange. But Alibaba’s scale and importance to the mainland’s tech-economy narrative could unlock billions in new investments sure to filter into the broader Hong Kong market.