Alibaba to upgrade Hong Kong listing to attract Chinese investment

(Reuters) – Shareholders of Chinese e-commerce giant Alibaba have approved a plan to upgrade its Hong Kong listing to primary status, the company said on Friday, a move expected to attract huge investment from mainland China.

The firm founded by Jack Ma originally proposed the idea several years ago, at a time when there were heightened geopolitical tensions between China and the US.

The listing status upgrade allows Alibaba to be part of a program that would link the respective exchanges in Shenzhen and Shanghai to the Hong Kong exchange.

The decision was expected to be approved by the company’s investors, who have long been concerned about the company’s growth prospects as it faces new market rivals such as PDD Holdings.

The conversion to the dual primary listing does not involve any issuance of new shares or even fundraising by the company, Alibaba said.

Shares in the Hong Kong-listed company gained as much as 0.7 percent to $82.2 in early trade.

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi Aich)