Alibaba’s stock marks a solid debut in Hong Kong trading 6.9% higher than the issue price

Alibaba Group debuted its shares in Hong Kong earlier this morning. Printing a solid start, share prices were reported around 6.9% higher as compared to the issue price. As per the Analysts, Alibaba has marked the largest stock sale for 2019 at a negligible premium to New York’s pricing.

Alibaba has raised $11.3 billion with its secondary listing in Hong Kong

The experts have further added that the secondary listing has helped the Asian e-commerce giant to raise a remarkable $11.3 billion. Amidst the anti-government protests going on in Hong Kong for the past six months, Alibaba’s shares have stirred up the confidence in the financial future of Hong Kong, as per the stock market analysts.

In an event that the company chooses to opt for over-allotment within the next month, the figure can potentially be improved to $12.9 billion. Alibaba Group currently holds a reputation as the largest business in Asia and the 7^th largest across the globe. With the raised funds, the e-commerce and retail specialist plans on diversifying its investments in online services.

Financial experts have also pointed out that the recent move will enable Alibaba to establish a firm investors-base in Hong Kong. The move can be expected to pay off lucratively in an event that the complications circling the U.S – China trade talks took a turn for the worse and hit the company’s stock in New York.

Alibaba’s Performance In The Stock Market In 2019

As of Tuesday afternoon, share prices were reported at HK$188.10. The issue price for the stock was highlighted at HK$176. Alibaba’s ADS that is worth 8 Hong Kong shares had a closing price of HK$186.3. The stock market analysts have opinionated that the news is yet to cast an impact on Alibaba’s shares in the American market. The overall performance for Alibaba has been greatly positive this year. In the extended trading on Monday, the stock was seen exchanging hands at $191.50, which marks the year-to-date high for the Chinese e-commerce giant.

Share prices for Alibaba on either of the exchanges (New York and Hong Kong) are unlikely to note a major difference, as per the experts. Being fungible, the interested investors can trade the stock on either of the exchanges.

As of June 2020, the stock is expected to be offered in the Stock Connect for trading that is likely to give a significant boost to the share prices. Stock Connect, as the name suggests, bridges Shenzhen and more importantly, Shanghai, with Hong Kong.