Seeking a dual primary listing will also allow Alibaba to apply for the Stock Connect scheme that will permit mainland China investors to buy the company’s shares more easily.

The move comes after the Hong Kong Stock Exchange (HKEX) in January changed its rules to allow “innovative” Chinese companies with weighted voting rights or variable interest entities (VIE) to carry out dual primary listings in the city.

Under a VIE structure, a Chinese company sets up an offshore entity for overseas listing purposes that allows foreign investors to buy into the stock.

“Hong Kong is also the launch pad for Alibaba’s globalisation strategy, and we are fully confident in China’s economy and future,” Alibaba’s CEO Zhang said in a statement.

Alibaba listed on the New York Stock Exchange in September 2014, marking what was at the time the largest IPO in history.

Since 2020, the company’s share price has tanked in both markets, as a sweeping regulatory crackdown by Beijing has battered Chinese tech companies.

At the same time, U.S. regulators have stepped up scrutiny of accounts of Chinese firms listed in New York, demanding greater transparency.

While broad in scope, a core focus of China’s crackdown has been regulators seeking to expand oversight of public offerings.

Last year, Chinese authorities launched a probe into ride-hailing giant Didi Chuxing just after it listed in New York, citing data privacy concerns.

The company later de-listed and began preparations to list in Hong Kong, leading analysts to interpret the probe as driven by a desire on Beijing’s part for data-rich companies to list domestically.

In order to switch to a dual primary listing, the HKEX said companies had to have a good track record of at least two full financial years listed overseas, and a capitalisation of at least HK$40 billion ($5.10 billion) or a market value of at least HK$10 billion plus revenue of at least HK$1 billion for the most recent financial year.