Why Alibaba Stock Is Shooting Higher Today

Alibaba Group Holding Limited BABA shares are advancing strongly in premarket trading on Tuesday.

Shares of the Chinese e-commerce giant are getting a boost from twin developments. The company said Tuesday it plans to apply for a primary listing in Hong Kong. The stock already has a secondary listing in Hong Kong, which is a special administrative region of China. The primary listing process is expected to be completed by the end of 2022.

The Shenzhen-Hongkong Stock Connect program, which is currently available only for primary listings, could help attract investments into Alibaba stock from mainland China.

Related Link: Alibaba Surges 3.6% On Primary Hong Kong Listing Plan, Hang Seng Sees Trend-Reversal

Secondly, seven key executives of its Ant Financial affiliate have reportedly vacated an Alibaba partnership they were earlier part of; this is being seen as a sign of the the e-commerce giant striving to put its house in order to steer clear of further regulatory scrutiny.

Price Action: Alibaba stock, which dipped below $99 on Monday, recovered to close 0.45% higher at $101.06. In premarket trading on Tuesday, the stock was seen rallying 4.69% to $105.80, according to Benzinga Pro data.