The Alibaba group has already been listed in Hong Kong since 2019. But for the moment it is only a secondary listing, not allowing it to participate in the lucrative Stock Connect program which links the Hong Kong stock exchanges to those of Shanghai. and Shenzhen.

The move, which will come into effect by the end of the year, also comes amid growing concerns among New York-listed Chinese tech companies about tighter regulation by U.S. authorities. a context of growing tensions between Beijing and Washington.

Beijing has opposed an attempt by US regulators to inspect the documents of Chinese companies listed in the United States.

Alibaba is among 250 companies that face delisting in New York if no deal is reached.

Alibaba stock jump

The announcement sent Alibaba's stock in Hong Kong soaring.

The stock ended Tuesday's session up 4.82% at HK$104.

The Hangzhou-based group in eastern China is one of many tech behemoths caught in a sweeping crackdown on alleged anti-competitive practices since late 2020 in China.

This campaign to control big tech companies is driven by fears that they have grown too quickly, and by accusations of improper collection of users' personal data.

Long considered a model of success for Chinese companies, Alibaba, founded by the whimsical Jack Ma, was the first to suffer the punishment of the authorities.

She had been fined 2.3 billion euros last year.

Passers-by in front of the headquarters of e-commerce giant Alibaba in Hangzhou on May 26, 2022 STR AFP

But as China's economy slows, authorities appear to be taking a more flexible stance.

In May, Premier Li Keqiang urged tech companies to go public, both in China and overseas.

Wider investor base

The move to make Hong Kong another primary listing market aims to foster "a broader and more diverse investor base to share in Alibaba's growth and future, especially from China and other global markets." 'Asia," group CEO Daniel Zhang said on Tuesday.

"Hong Kong is also the launching pad for Alibaba's globalization strategy, and we have full confidence in China's economy and future," he added.

Hong Kong's Stock Connect program allows companies to tap into mainland China's liquidity for easier financing and higher valuations.

But to benefit from it, they must carry out the majority of their annual transactions in Hong Kong.

Alibaba is still feeling the backlash from Beijing's tightening of the tech sector, and the slowdown in the Chinese economy caused by draconian anti-Covid restrictions.

In 2021, its net profit fell by 59%.

Alibaba also announced on Tuesday that all representatives of its digital payment subsidiary Ant Group had been removed from a joint management body.

Seven Ant Group executives, including CEO Eric Jing and CTO Ni Xingjun, left the Alibaba Partnership, an entity that can appoint the majority of Alibaba's board members, on May 31, according to a report. annual published on Tuesday.

The headquarters of Ant Group in Hangzhou, in the Chinese province of Zhejiang, on October 13, 2020. STR AFP

According to a spokesperson for Ant Group, this measure is part of the long restructuring process required by the Chinese government to "improve corporate governance".

In 2020, Chinese regulators scuppered a gigantic $34 billion IPO of Ant Group in Hong Kong at the last minute.

Ant Group ended its data-sharing deal with Alibaba and recently reshuffled its board, with half of its seats now held by independent directors.

The number of non-executive directors from Alibaba has meanwhile been reduced from three to two.

© 2022 AFP