#ALIBABA STOCK HONG KONG REGISTRATION#

China's big tech companies have been dealing with increased scrutiny from Beijing and were hit with yet more fines at the start of the year for failing to disclose.

The negative sentiment around Alibaba is due to concerns that the company could follow Didi in delisting from the NYSE. Investors have to instruct theirs to carry out the process but need to be mindful of the conversion ratio - the number of HK-listed shares they will receive per one ADR share. Converting shares isn't a straight-forward process, though, and not all trading platforms and brokers offer the service. As liquidity moves away from the US, the ADR share price could fall while the Hong Kong share price would rise. It also fell in June and March following the conversion of 1.2 billion and 2 billion shares respectively.įurther conversions later this month could depress the ADR Alibaba share price, which came under pressure in 2021 and is down 43% in the last 52 weeks. The publication highlights the 14% decline in the Alibaba share price during last September after around 670 million ADR shares were converted. Steven Leung, executive director at brokerage firm UOB Kay Hian, told Bloomberg that the recent dip in the Alibaba share price could be a sign that more investors will follow suit in the near future and sell their ADR holdings.

#ALIBABA STOCK HONG KONG REGISTRATION#

Hong Kong shares are up 8.6% year-to-date.Īccording to stock exchange data holdings under registration with Hong Kong's Central Clearing and Settlement System increased by about 724 million shares in the last trading week of 2021, reported Bloomberg. Although the Alibaba share price is up 6.5% year-to-date to $128.30 at the close on 10 January, there's a worry that investors may continue to convert their ADR holdings.

Alibaba stock hong kong