Alibaba Group Holding Ltd. said a planned conversion of its listing in Hong Kong to primary status won’t be completed by the end of 2022 as earlier planned, according to filing with the Hong Kong Stock Exchange.
(Bloomberg) — Alibaba Group Holding Ltd. said a planned conversion of its listing in Hong Kong to primary status won’t be completed by the end of 2022 as earlier planned, according to filing with the Hong Kong Stock Exchange.
The company said it has been preparing for the primary listing in Hong Kong, while closely monitoring market conditions and other factors. It needs to formulate and submit a new employee stock ownership program to shareholders for approval in order to comply with the newly amended rules in Hong Kong before the conversion.
China’s leading e-commerce company said in July that it would seek to elevate its share status in Hong Kong, a shift after it pulled off the largest initial public offering to date in the US in 2014. The move came amid rising political tensions between Beijing and Washington, with hundreds of Chinese companies listed in the US facing the prospect of getting kicked off American exchanges.
A primary listing in Hong Kong would also allow investors in China to buy shares of the country’s internet giant directly for the first time. It will be able to seek inclusion in the Stock Connect link with the Shanghai and Shenzhen exchanges.
The filing of the Hong Kong delay came as Alibaba released earnings for the September quarter, reporting a surprise loss because of the tumbling value of its portfolio investments.
Its net loss totaled 20.6 billion yuan ($2.9 billion) versus estimates for a profit of 18.8 billion yuan, after adjusting for market investments. The company did unveil a $15 billion expansion to its buyback program.
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