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alibaba is officially included in the hong kong stock connect.

on september 9, the shanghai stock exchange and the shenzhen stock exchange issued a notice on the adjustment of the hong kong stock connect targets under the shanghai-shenzhen-hong kong stock connect. the notice showed that due to the adjustment of constituent stocks of the hang seng composite large cap index, mid cap index and small cap index, according to relevant regulations, the list of hong kong stock connect targets under the shanghai-shenzhen-hong kong stock connect has been adjusted and will take effect from the next hong kong stock connect trading day.

the adjustment information shows that 33 stocks were added, including alibaba (09988.hk), zhixing automotive technology (01274.hk), sf express (09699.hk), chabaidao (02555.hk), and laopu gold (06181.hk), while 33 stocks were transferred out, including xiabu xiabu (00520.hk), poly real estate (01238.hk), shimao group (00813.hk), and sino-ocean group (03377.hk).

the above announcement means that southbound funds will be able to purchase stocks such as alibaba through the hong kong stock connect.

on september 4, the hang seng index added a new rule for the rapid inclusion of the hong kong stock connect index. securities that are eligible for southbound trading by converting from secondary listing to primary or dual primary listing will be included in the index in the next regular monthly adjustment if their closing total market capitalization ranks in the top 10 among the existing constituents.

it is worth noting that alibaba, which completed dual primary listing on the new york stock exchange and the hong kong stock exchange on august 28, became the first beneficiary of the new rules. morgan stanley's research report pointed out that in the long run, the proportion of southbound funds holdings may stabilize at more than 10%. goldman sachs' research report predicts that southbound funds will bring alibaba a potential capital inflow of us$15 billion to us$16 billion.

on the morning of august 23, alibaba announced on the hong kong stock exchange that it would voluntarily convert to a dual primary listing on the hong kong stock exchange.

data shows that since alibaba's secondary listing in hong kong in 2019, most of its publicly traded shares have been transferred to hong kong. in terms of market capitalization and trading volume, alibaba has always ranked among the top three hong kong stocks, and a primary listing is a natural outcome. in july 2022, alibaba applied for a primary listing in hong kong. dual primary listings in hong kong and new york will further expand the investor base from mainland china and other parts of asia, promote the diversification of shareholder structure, enhance the liquidity of alibaba's hong kong stocks, and provide investors with greater flexibility in holding and trading alibaba shares in the open market.

on august 15, at alibaba's earnings conference, alibaba group chief financial officer xu hong said that alibaba is seeking a major listing conversion in hong kong. the company will hold a shareholders' meeting on august 22. there is such a proposal in the shareholders' meeting. if the shareholders' meeting approves it, it is expected that the major listing conversion in hong kong can be completed by the end of august 2024. "as for whether to connect to the hong kong stock connect in the future, we still have to go through some procedures under the different rules of each exchange. we should follow the procedures and it can be achieved."

according to dazhihui vip, as of the close of september 9, alibaba's hong kong stocks closed down 1.88% at hk$78.300 per share.