Does it mean that by watching the performance of the earlier opening stock exchange, one can reasonably predict the performance of the stock later opening stock exchange for example the case of BABA Dual Listing?

Quite curious, BABA is listed in HK and NYSE.

BABA was fined $2.8b recently, the stock rose >5% in HK, does this mean that any investor will be able to watch this trend and know for certain that when BABA starts trading in NYSE, there will be roughly a >5% gain as well?

Does this mean that by watching the performance of the earlier opening stock exchange, one can reasonably predict the performance of the stock later opening stock exchange?

Not sure but this sounds like its not supposed to happen or people will just make loads of money by essentially 'seeing the future'. Pretty sure I am missing out something important here, but I am too novice to figure it out.

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Chris

12 Apr 2021

Owner and Writer at Tortoisemoney.com

Yes it is true that the shares in the US will likely perform the same way as well, in fact it is up about 6% as I write this. But how would you profit off of this though? Sure, you could put in an order at 4pm when premarket opens, but no one would sell it to you at last Friday's closing price (223.31USD) and they'll know to sell at the corresponding price from the movement of HK listed BABA (~336-337USD). As such, I don't think you'd be able to make any easy profits like that.

Of course, there are likely small arbitrage opportunities between the two, and there will be traders watching and ready to capture these small profits, but that's different already.

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