Alibaba to upgrade Hong Kong listing in a bid to attract Chinese investment

(Reuters) -Shareholders of Chinese e-commerce giant Alibaba (NYSE:) have approved a plan to upgrade its Hong Kong listing to primary status, the company said on Friday, a move that is expected to attract huge investments from mainland China.

The Jack Ma founded firm had originally proposed the idea a couple of years ago at a time when there was heightened geopolitical tensions between China and the U.S.

The listing status upgrade allows Alibaba to be part of a program which would connect the respective bourses in Shenzhen and Shanghai to the Hong Kong stock exchange.

The decision was expected to be approved by the company’s investors who have long been concerned over the firm’s growth prospects as it faces new market rivals such as PDD Holdings.

The conversion to dual primary listing does not involve any issue of new shares or even raising of funds by the company, Alibaba said.

Hong Kong-listed shares of the company gained as much as 0.7% to HK$82.2 in early trade.