On Tuesday, Lenovo said it had filed a request to the Hong Kong stock exchange, asking them to issue so-called Chinese depositary receipts (CDRs) on the Science and Technology Innovation Board or Star Market of the Shanghai Stock Exchange.
CDRs allow mainland Chinese investors to buy equity in non-Chinese incorporated companies, and are similar to American depositary receipts (ADRs) which allow stocks of non-U.S. company shares to trade on American exchanges. They are technically not shares but represent equity interest in a company.
Lenovo said it intends to issue new ordinary shares that would represent no more than 10% of the total enlarged number of ordinary shares of the company.
By the Hong Kong market close on Monday, shares of Alibaba listed in the city plunged 7.98%, adding to losses for the firm. The stock had also dived last Thursday following reports that Chinese regulators will probe the tech behemoth for suspected monopolistic behavior.
Shares of other Hong Kong-listed Chinese tech firms also declined sizably: Tencent fell 6.65% while Meituan slipped 6.88%. China s largest chipmaker SMIC also saw its stock in Hong Kong drop 4.2%.
The broader Hang Seng Tech index shed 4.26% on the day to 7,795.78.
Asia markets mixed
Stocks in Asia were mixed on Monday as the final trading week of 2020 kicked off.
Alibaba Stock Declines Another 8% amid Regulatory Pressure in China
Dec 28 2020 · 12:22 UTC | Updated
Dec 28 2020 · 12:24 by Ibukun Ogundare · 3 min read
Photo: Depositphotos
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As the year comes to an end and the final trading week of 2020 begins, Asia markets were mixed on Monday as some firms pulled in gains and others declined. Alibaba stock is in the red.
Alibaba Group Holding Ltd (HKG: 9988) lost 7.98% in its stock in Monday trading as regulators in China ordered the company’s affiliate Ant Group to formulate a rectification plan for its business. As for its BABA stock on NYSE, after losing 13% in the previous trading session, at press time, BABA is down 1.85% to $217.90 in the pre-market.