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Alibaba’s Hong Kong-listed shares could be ready for mainland buyers via Stock Connect by September 9, Morgan Stanley says
- The e-commerce giant is likely to see up to US$12 billion of inflow from mainland investors in the six months after its primary listing in Hong Kong
- Stock price has been lagging the broader market this year amid intense competition at home
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Alibaba could join the Stock Connect cross-border trading mechanism as early as September 9, after its dual-primary shares listing in Hong Kong is completed, according to Morgan Stanley. The overall impact on the market is expected to be limited, however, after an initial influx of money from mainland investors, they said.
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Up to US$12 billion of investment from mainlanders is likely in the first six months after the e-commerce giant joins the Stock Connect scheme, which would bring their ownership of Alibaba to around 7 per cent, strategists including Laura Wang said in a note on Sunday.
The percentage of mainland ownership is likely to stabilise around the low teens in the long run, they added.
“We expect some inflows but not major,” they wrote.
Alibaba owns the South China Morning Post.
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The Hangzhou-based company, whose American depositary receipts (ADRs) are traded in New York, disclosed a progress report on its primary listing plan in Hong Kong last month. It said it expects to complete the conversion from secondary to primary listing by the end of August, which is a prerequisite to be included in the Stock Connect, the cross-border exchange link programme.
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