Despite months of ongoing pro-democracy protests, Hong Kong’s stock market has chugged along. The Hang Seng Index is up 10% so far this year. That partly explains why China’s e-commerce juggernaut has revived plans to list shares there.
According to Bloomberg, Alibaba will early next week have a listing hearing—a precursor to a public offering—as it prepares to go public and raise as much as $15 billion.
The listing would be a big deal for the Hong Kong stock exchange, which could use the boost of a high profile listing. If the deal goes through, it would be seen as a sign of Beijing’s support for Hong Kong. It would also open a pathway for Chinese investors in the mainland to buy shares in one of the country’s most successful enterprises.
That would be a welcome change for domestic Chinese investors who, because of an effective bar to owning shares overseas, have not been able to share in the success of Alibaba, and the other successful Chinese tech companies listed overseas.