Recently, some of Alibaba’s major institutional investors have successively converted their US listed pre deposited securities (ADRs) into Hong Kong listed stocks in response to the potential threat that the United States may force Alibaba to delist in the United States.
Singapore’s sovereign funds Temasek, Baillie Gifford and Matthews Asia are among the many institutions demanding a share swap, according to the letter.
Nelson Yan, head of offshore capital markets at credit wealth management (Hong Kong), said that for long-term investors, Alibaba ADR was replaced by Hong Kong listed shares because of the political uncertainty in the United States.
Temasek confirmed that it would convert half of Alibaba ADR into Hong Kong listed shares. Baillie Gifford also confirmed that one fifth of Alibaba ADRs were exchanged for Hong Kong listed shares. Matthews Asia swapped three-quarters of Alibaba ADRs for Hong Kong listed shares.
The move has led to a significant increase in Alibaba’s trading in Hong Kong.
According to data from the central clearing system, Alibaba currently has 2.535 billion shares in circulation in Hong Kong, which has increased by about 2 billion shares from 500 million shares in November 2019. According to Hong Kong’s offer of HK $252.8, Alibaba’s Hong Kong shares have a current market value of HK $640.8 billion. Alibaba’s U.S. stock price was 265.8 dollars per share, with a turnover of 25.6482 million yuan and a total market value of $718.899 billion.