Alibaba to Join China's Stock Connect Program, Potential $20 Billion Boost

Sep 9, 2024, 12:00 PM

Alibaba Group Holding will be included in China's Stock Connect program, effective Tuesday. This inclusion will allow 200 million mainland Chinese investors to access Alibaba's Hong Kong-listed shares. The Shanghai and Shenzhen stock exchanges will both include Alibaba in their respective Stock Connect schemes, including the Shenzhen-HK Stock Connect. Analysts forecast that this move could boost the market by up to $20 billion, with some estimates suggesting a potential $12 billion increase. The inclusion is expected to quicken capital outflows as mainland China investors have been buying Hong Kong equities at a record pace.