Alibaba Shares Surge 5.2% in Hong Kong as It Joins China's Stock Connect Program

Sep 10, 2024, 01:55 AM

Alibaba Group Holding Ltd. has been officially included in China's Stock Connect program, allowing its shares to be accessible to mainland Chinese investors. This inclusion covers both the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes. Starting Tuesday, 200 million mainland investors can now trade Alibaba's Hong Kong-listed shares. Analysts forecast this move could potentially boost the market by up to $12 billion, with Morgan Stanley estimating net southbound capital inflows of $17 billion to $37 billion over the next year. Following the announcement, Alibaba's shares surged by as much as 5.2% in Hong Kong, with a 4.2% rise noted after the stock upgraded its Hong Kong listing to primary status. The inclusion is expected to enhance capital inflows and investor interest in Alibaba, which has already seen a significant increase in trading volume.