Alibaba stock rises in wake of China regulator's draft rules on overseas listings

Shares of Alibaba Group Holding Ltd. BABA, -1.26% roseate 0.8% successful greeting trading Monday, aft China's securities regulator's draught rules connected overseas listings released implicit the agelong play OK'd the listing operation known arsenic variable-interest entity (VIE) utilized by the e-commerce elephantine to database its shares connected the NYSE. Alibaba's banal has present rallied 6.8% since closing astatine a 4 1/2-year debased of $111.96 connected Dec. 3, but was inactive down 20.4% implicit the past 3 months, and 48.6% twelvemonth to date, portion the S&P 500 SPX, +0.92% has gained 26.9% this year. The China Securities Regulatory Commission (CSRC) said companies tin database shares extracurricular of China utilizing the VIE operation arsenic agelong arsenic they travel home laws and registry with the CSRC first, according to a study successful The Wall Street Journal. Among different China-based companies listed successful the U.S. utilizing the VIE structure, which are still facing scrutiny by U.S. regulators, shares of ride-hailing institution DiDi Global Inc. DIDI, -2.77% slid 2.0%, e-commerce institution JD.com Inc. JD, -1.44% fell 0.8% and internet-search institution Baidu Inc. BIDU, -0.12% gained 1.2%. DiDi said earlier this month that it plans to delist from the NYSE, and to database successful Hong Kong, amid unit from regulators.