Chinese stock exchanges add Alibaba into Stock Connect Scheme

BEIJING (Reuters) – China’s Shanghai and Shenzhen stock exchanges will include Chinese e-commerce giant Alibaba Group and some other companies into its Stock Connect cross-border investment scheme from Tuesday, separate filings showed on Monday.

This move will integrate Alibaba into a program linking the Shenzhen and Shanghai stock exchanges with the Hong Kong stock exchange.

Alibaba’s shareholders had previously approved the upgrade of its Hong Kong listing to primary status, effective Aug. 28, a move that is expected to attract huge investments from mainland China.

Alibaba said before that this transition to a dual primary listing does not involve issuing new shares or raising additional funds.

In April, China’s securities regulator announced plans to facilitate Hong Kong listings for leading Chinese companies and expand the Stock Connect scheme to enhance Hong Kong’s status as a “global financial centre”.