Chinese tech stocks slip into the red as Alibaba lays out plans for Hong Kong listing

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Major Chinese tech stocks showed little momentum on Tuesday after e-commerce giant Alibaba (NYSE: BABA) stating that it planned to apply for a primary listing in Hong Kong.

Prior to the opening of US stock markets, Alibaba (BABA) said it expects its shares to be listed in Hong Kong by the end of the year. Ali Baba (BABA) said the company would then see its ordinary shares listed in Hong Kong, while its U.S. depository shares would remain listed in New York.

“Hong Kong is also the launching pad for Alibaba’s globalization strategy,” Alibaba Chief Executive Daniel Zhang said in a statement. “And we are fully confident in China’s economy and future.”

Alibaba’s (BABA) plans come on the heels of Chinese ride-hailing leader DiDi Global (OTCPK:DIDIY) moved its share registration to Hong Kong from New York this year.

Many Chinese companies have been caught between domestic pressure on issues such as regulatory issues and how they secure their customers’ personal information, and the steps the U.S. Securities and Exchange Commission has taken to tighten audit inspections of the operations of these companies. A new US law says companies whose auditors cannot be inspected by US regulators for three consecutive years can be delisted from US stock markets.

Shares of Alibaba (BABA) retreated from their session highs but remained up 0.6%.

Other big Chinese tech companies plunged into the red as trading grew. Baidu (BIDU) was down 1%, Weibo (WB) was down 2.4%, Tencent Holdings (OTCPK:TCEHY) and Pinduoduo (PDD) were each down around 1%, JOYY Inc. (YY) was down fell 1.4% and NetEase (NTES) fell 2.5%.

Last week, Bernstein analyst Robin Zhu upgraded Alibaba (BABA) to outperform market performance on the grounds that “winter is over” for China’s tech kingpin.

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