Alibaba Group Holding shareholders have approved a plan to upgrade its Hong Kong listing to primary status on Aug 28, a manoeuvre expected to attract billions of dollars in investment from mainland China.
Shareholders ratified the decision to convert the Hong Kong listing, a plan first broached two years ago amid heightened tensions with the US. That allows Alibaba to join a programme that connects the Shanghai and Shenzhen bourses to Hong Kong’s exchange.
Alibaba’s shares have underperformed those of key rival Tencent Holdings amid concerns over the impact of competition and sluggish China consumption.
Estimates for the capital inflow from joining the so-called southbound connect program range from about US$12 billion ($15.71 billion) in the first six months after inclusion, to around US$19.5 billion.
