Alibaba will not be included in Hong Kong’s benchmark Hang Seng index unless Hong Kong’s Hang Seng Index Limited adjusts its rules significantly, Bloomberg reported. Responding to questions about the possibility of Alibaba becoming an constituent stock, media representatives of Hang Seng Index Limited said on Wednesday that shares of different voting structures did not meet the current rules on eligibility for inclusion in constituent stocks.
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The representative said that the Hang Seng Index Limited was scheduled to start negotiations early next year to assess the eligibility of shares of companies with the above-mentioned equity structure to be included in the stock index. This special arrangement was one of the reasons alibaba’s initial public offering in 2014 chose New York over Hong Kong.
Alibaba can be included in the Hang Seng Composite Index. The index is broader, and mainland investors can invest in medium and large stocks under the index through the interconnection mechanism. According to the rules of the Hang Seng Index Limited, no listing history is required to join the Hang Seng Composite Index.
China first approved shares of different voting structures listed in Hong Kong in October. Mainland investors can buy Xiaomi and U.S. stocks based on this.