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If Alibaba is delisted from NYSE, how would it impact investors from HKEX?
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Tan Choong Hwee
Edited 06 Dec 2021
Investor/Trader at Home
NYSE-listed BABA is an ADR representing 8 HK-listed 9988 shares. If BABA is delisted, their shareholders still own the shares, and can either trade on US OTC market, or convert them to 9988 shares. For the latter case, there would be an increase of free float of 9988 on HKEX, and short term downward pressure when those US investors dumped their shares in HKEX. However, 9988 share price would revert to its fair value based on fundamentals.
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The lot size of Alibaba's stock in Hong Kong will be 100 shares.
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So if you got single-digits share count, those are untradeable i reckon