Alibaba’s Connect Membership May Be a Boon for Overseas Stocks
- Tech firm’s shares to join Stock Connect after listing upgrade
- Inclusion will free up $3.2 billion of QDII quota, BI says
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Alibaba Group Holding Ltd.’s impending inclusion in the Stock Connect may unleash as much as $3.2 billion of cash across global markets. Analysts say that Japan and US equities are potential beneficiaries.
The addition will allow qualified domestic institutional investor funds to own shares of Alibaba via the connect, instead of accessing them via their foreign exchange quota. Asset managers can then use the quota that’s freed up to buy other shares including overseas names.