Alibaba Joins China's Stock Connect, Eyes Billions In Investment Boost

Author: Anusuya Lahiri | September 09, 2024 12:47pm

Alibaba Group Holding (NYSE:BABA) is set to join China’s Stock Connect program, allowing approximately 200 million mainland-based investors to invest in the $400 billion e-commerce company.

The inclusion will open Alibaba’s Hong Kong-listed shares to onshore traders, which has the potential to enhance investor access and drive capital inflows significantly.

The company’s shares will be part of the southbound channel of the Stock Connect initiative starting Tuesday, SCMP cites Shanghai and Shenzhen stock exchanges.

The addition of Alibaba to the program is expected to attract up to $12 billion in onshore funds within six months, SCMP cites from Morgan Stanley forecast.

Prior reports claimed that the addition to Stock Connect by September 9 could unlock up to $3.2 billion in cash across global markets.

Alibaba’s listing in the Stock Connect will align it with other top Chinese tech companies like Tencent Holdings (OTC:TCEHY) and Xiaomi Corp (OTC:XIACF) (OTC:XIACY), which are already accessible to mainland investors. This move follows Alibaba’s recent switch to a dual-primary listing in Hong Kong.

Alibaba Group lost over 9.4% in the last 12 months. Investors can gain exposure to the stock through SPDR NYSE Technology ETF (NYSE:XNTK) and Invesco Nasdaq Internet ETF (NASDAQ:PNQI).

Price Action: BABA stock is down 0.29% at $80.95 at the last check on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: BABA PNQI TCEHY XIACF XIACY XNTK