On September 10, Alibaba (09988) was officially included in the Hong Kong Stock Connect program. On its inaugural day, the stock attracted a net inflow of HKD 8.47 billion, with a trading volume of 207 million shares—marking the highest single-day trading volume since the company’s listing. The total transaction amount reached HKD 16.85 billion. Therefore, Alibaba’s inclusion in Stock Connect represents a significant milestone for the company in the global capital markets and injects renewed vitality into the Hong Kong financial market.

Trading Activity on the First Day

Alibaba’s entry into Stock Connect on September 10 was met with considerable enthusiasm from southbound investors. Specifically, the stock recorded a net inflow of HKD 8.47 billion, with trading volume peaking at 207 million shares, the highest single-day volume since its listing. Additionally, the total transaction amount reached HKD 16.85 billion. Alibaba’s stock exhibited robust performance, closing with a gain of over 4% at HKD 81.60, which brought its market capitalization to HKD 1.54 trillion. This increase reflects a positive market reaction to Alibaba’s inclusion in Stock Connect and indicates optimistic investor sentiment regarding the company’s future prospects.

(Source: uSMART HK)

Background of Inclusion in Stock Connect

The Stock Connect program facilitates international investors in trading Hong Kong-listed stocks through the Shanghai and Shenzhen stock exchanges. Similarly, it enables mainland investors to access the Hong Kong market through these exchanges. As a result, Alibaba’s inclusion enhances its accessibility within the Hong Kong market and further promotes the integration of global financial markets.

On August 28, Alibaba completed its dual primary listings on the New York Stock Exchange and the Hong Kong Stock Exchange—an essential prerequisite for its inclusion in Stock Connect. Then, on September 4, the Hang Seng Index Company announced a new rule for the expedited inclusion of securities into the Stock Connect Index. According to this rule, securities transitioning from secondary to primary or dual primary listings, and meeting the southbound connectivity criteria, will be included in the index if their market capitalization ranks among the top 10 of existing constituents. Consequently, Alibaba became the first beneficiary of this new rule.

Market Impact and Strategic Significance for Alibaba

Alibaba’s debut trading under Stock Connect has notably enhanced liquidity in the Hong Kong market and stimulated increased investor interest in Hong Kong equities. As a prominent player in the global technology sector, Alibaba’s inclusion offers investors diversified investment opportunities and may attract substantial capital inflows. This increase in market activity, in turn, contributes to the overall dynamism and competitiveness of the Hong Kong financial market.

For Alibaba, participating in Stock Connect is an integral part of its global strategy to enhance visibility and accessibility in the Asian market. This move underscores Alibaba’s commitment to reinforcing its global market position and provides a platform to attract a broader base of international investors.

How to Invest and Trade on uSMART

To invest in these stocks using the uSMART HK app, log in and click "Search" in the top right corner of the page. Enter the stock code, such as "09988," to access the details page for trading information and historical trends. Click "Trade" in the lower right corner, select "Buy/Sell," and input your trading conditions before submitting the order. An image guide is provided below for additional assistance.

(Source: uSMART HK)