Shares in Alibaba surged by 4.2% on Tuesday as the company gained inclusion in a scheme that allows mainland Chinese investors to buy its Hong Kong stocks, boosting its market value significantly.
According to Bloomberg estimates, Alibaba's entry into the Stock Connect scheme could unlock as much as $19.5 billion in new capital from mainland Chinese investors.
Chelsey Tam, a senior equity analyst at Morningstar, noted that mainland investors favoring transparency and strong investor relations may lean towards Alibaba over newer competitor PDD, despite PDD's rapid growth.
By upgrading to a primary listing in Hong Kong, Alibaba's shares now qualify for the Stock Connect scheme, enhancing investment opportunities and its competitive stance against emerging rivals like PDD.
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