Through T212 we can buy the ADR version of $BABA. Which represents an underlying ADS that the custodian bank holds.
According to the articles, we can convert our ADR stocks, into stocks of the Hong Kong Exchange.
In the our original post you mentioned stocks and dual listings.
You aren’t wrong. With ADRs, it have a possibility to exchange the ADR with ADS for real underlying securities, it will depend on number of factors, the financial intermediaries, if foreigner investors could hold the local securities, etc.
However, I don’t know “what direction” it would work. eg. With a UK stock such as BP my guess would be it is likely that you can only convert from the USA ADR to the UK listed stock and not the other way around.
For example, for Alibaba would we be only able to convert the Hong Kong stock (secondary listing?) into the NYSE stock (primary listing) and not the other way around?
+1 for this request for HK exchange to be added and the ADR conversion. This issue already affects the China mobile ADR which was delisted from the NYSE. So this enhancement would solve this issue as well.
There is normally a small cost associated with the ADR conversion process, least working with other brokers this is market norm for the work involved when converting ADRs and pNote positions back to the local line. It may be simpler selling and buying back the stock, as incurring the 2 x 0.15% FX fees and spread may be lower than this if 212 can manually process this on your behalf.
Hello,
does somebody know if there are plans to add Hong Kong exchange?
Chinese companies(BABA-9988 or Baidu-9888 for example and more) look very attractive, but it is pretty scary to buy them on NYSE/NASDAQ due to risk of delisting from US exchanges…