Alibaba plans to shut down Tmall in Hong Kong on 30th October, 2022, according to Technode.com. In May 2021, Alibaba launched the service in partnership with Adidas in the city to sell fresh produce and consumer products. Alibaba provided no explanation for this move, however, the company does intend to continue providing payment and delivery services to Hong Kong residents through its Taobao Marketplace.
Alibaba shares recently fell 5.7 percent on the Hong Kong Exchange as a result of Chinese authorities questioning executives in Alibaba’s cloud unit over data theft. Caixin reported that consumers’ last order date is 21st August, while merchants’ last delivery date is 26th August. Additionally, the Chinese e-commerce giant plans to lay off over 30 percent of its internal investment team – the latest in a series of staff dismissals since February.
Alibaba Group has also authorized its management to apply for a primary listing on the Main Board of Hong Kong Stock Exchange. According to the press release issued on 26th July 2022, Alibaba will become a dual-primary listed company on the New York Stock Exchange as American Depositary Shares (ADSs) and the Hong Kong Stock Exchange as ordinary shares once the primary listing process is completed.
Alibaba maintains a secondary listing on the Main Board of the Hong Kong Stock Exchange and will pursue a primary listing status in accordance with the HKSE’s rules and regulations. Both the company’s ADSs listed on the New York Stock Exchange and its ordinary shares listed on the Hong Kong Stock Exchange are fungible, and investors can accept either of these forms of holding their shares.
Alibaba Group chairman and CEO Daniel Zhang said: “We have received approval from the board to apply to add Hong Kong as another primary listing venue, in the hopes of fostering a wider and more diversified investor base to share in Alibaba’s growth and future, especially from China and other markets in Asia.”
On the Hong Kong Stock Exchange, the company’s public float and transaction volume have increased significantly since its secondary listing in November 2019. For the six months ending 30th June 2022, Alibaba’s average daily trading volume in Hong Kong was approximately USD 0.7 billion, while its average daily trading volume in the US was approximately USD 3.2 billion.
Since its businesses are based in Greater China, the company expects that a dual-primary listing status would broaden its investor base and facilitate incremental liquidity, especially among China- and Asia-based investors.