Alibaba Photo: VCG

Alibaba Group Holding announced on Friday that it would convert its listing into a dual primary listing status on the Hong Kong Stock Exchange. Experts believe the swapping of status will improve the company's position in the capital market, boost stock liquidity, and reduce risks associated with listing in the US. It is also expected to enhance Hong Kong's status as an international financial hub.

Alibaba announced that the voluntary conversion of its secondary listing to primary listing on the Hong Kong Stock Exchange will become effective on August 28, and it will become dual primary listed on the Hong Kong Stock Exchange and the New York Stock Exchange on the effective day, according to a statement on Friday.

"Primary listing means that the company needs to comply with more comprehensive regulatory requirements and disclosure rules. In contrast, a secondary listing may follow a more simplified listing process and reporting requirements," Hong Yong, an expert at the Digital-Real Economies Integration Forum 50, told the Global Times on Friday.

Alibaba's decision to convert its secondary listing in Hong Kong into a dual primary listing is primarily aimed at strengthening its position in the Hong Kong capital market, increasing stock liquidity, and reducing potential uncertainties and risks associated with its listing in the US, Hong said.

The shift of listing status will help Alibaba attract more investors from the Chinese mainland and other Asian regions, further expanding its investor base, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Friday.