Alibaba announced this morning that the voluntary conversion of its secondary listing on the Hong Kong Stock Exchange to a primary listing will take effect. Next Wednesday (28th), the company will have dual primary listings on the Hong Kong Stock Exchange and the NYSE. JPMorgan recently invited long-term funds and hedge fund investors to participate in an Alibaba investor meeting. Long-term funds and hedge funds have different views on Alibaba's fundamental prospects, but both are interested in being included in the Hong Kong Stock Connect.
JPMorgan pointed out that long-term funds see Alibaba's potential inclusion in the Hong Kong Stock Connect as a clear opportunity, but hedge funds have noted that the relevant topics have been discussed for some time, suggesting that the stock price may have already reflected this news. The bank stated that long-term funds maintain a cautious optimism towards Alibaba, as they believe the company's market share potential will increase and its valuation is low, but they remain wary of past performance and uncertain consumer sentiment.
JPMorgan maintains an 'overweight' rating on Alibaba with a target price of 106 Hong Kong dollars.