Alibaba soars with HKEX with primary listing bid in Hong Kong while property developers extend rally on bailout speculation

Name: China orders Covid lockdowns and mass testing as nationwide case numbers surpass 1,000
Uploaded: 2022-07-26T02:05:04.000Z
Duration: 2 min 50 s
Description: China orders Covid lockdowns and mass testing as nationwide case numbers surpass 1,000

Alibaba seeks a primary listing in Hong Kong by year-end in bid to widen its investor base, seen as a precursor to Stock Connect addition

An index tracking developers surges on report China is putting together a fund to help cash-strapped builders finish projects

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A man walks past an electronic board displaying the Hang Seng Index in March 2022. Photo: EPA-EFE

Cheryl Heng

Published: 10:05am, 26 Jul 2022Updated: 4:53pm, 26 Jul 2022

Hong Kong stocks jumped by the most in a week, led by Alibaba Group Holding after the e-commerce group sought a primary listing status to court more investors. Chinese developers extended gains on media reports about a state rescue fund.

The Hang Seng Index added 1.7 per cent to 20,905.88 at the close of Tuesday trading, rising from a one-week low. The Tech Index gained 1.4 per cent, while the Shanghai Composite Index rose 0.8 per cent.

Alibaba soared 4.8 per cent to HK$104.40, the most in four weeks. JD.com added 1.8 per cent to HK$251.40 and Sands China climbed 4.6 per cent to HK$18.70. HSBC appreciated 2.6 per cent to HK$50.10 while bourse operator Hong Kong Exchanges and Clearing gained 3.5 per cent to HK$368.20.

Alibaba, the owner of this newspaper, expects to gain dual-primary status by year-end, it said in an exchange filing on Tuesday. It currently maintains a secondary listing in Hong Kong and a primary listing in New York. A primary listing may allow it to join the Stock Connect scheme, widening access to mainland investors.

“More US-listed Chinese companies will turn to Hong Kong for primary listings, because they cannot join the Stock Connect through secondary listing,” said Ernie Hon, head of research at Essence International. Alibaba will outperform in the short term on the news, he added.

Today’s gain trimmed the Hang Seng Index’s decline this month to 5.9 per cent. Weak second-quarter performance, regulatory flare-ups and a home mortgage boycott have combined to erode all of the gains in May and June, erasing US$176 billion of market value.

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China orders Covid lockdowns and mass testing as nationwide case numbers surpass 1,000

Property developers rallied for the second day on China’s reported bailout plans for the embattled sector. Country Garden soared 13.4 per cent to HK$3.72. The Hang Seng Property Index added 2.6 per cent, the most in five weeks, with China Resources Land and Longfor Group advancing at least 3.6 per cent.