Alibaba pops 6% after announcing plans for a dual primary listing in Hong Kong

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Alibaba pops 6% after announcing plans for a dual primary listing in Hong Kong
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The Chinese tech giant's shares are already traded on both U.S. and Hong Kong exchanges, but the listing in Hong Kong is a secondary one.

have dual primary listings in Hong Kong and the U.S., and have both been included in the stock connect scheme.

A China Renaissance report from January noted that, based on historical data, the turnover and velocity of companies with a secondary listing in Hong Kong are much lower than that for ADRs in the U.S. ADRs are American depositary receipts, which serve as proxies for shares of foreign companies that list in the U.S.U.S.-China dispute over accounting issuesU.S. and Chinese regulators have been working to resolve an audit dispute that has threatened U.S.-listed Chinese companies with delisting.

"In case something goes really wrong … Alibaba can shift its primary listing status back to Hong Kong and still enjoy a reasonable liquidity in terms of stock trading," he said.— CNBC's Evelyn Cheng contributed to this report.

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