Alibaba Group seeks dual-primary listing in China's Hong Kong and the United State's New York, according to the company's Tuesday announcement on its official website.

The move was made "in the hopes of fostering a wider and more diversified investor base to share in Alibaba's growth and future," said Daniel Zhang, chairman and CEO of Alibaba Group.

The company said its board of directors had authorized management to apply for a primary listing on the main board of Hong Kong's stock exchange in addition to its New York listing.

The primary listing process, which is stricter than the secondary listing process, is expected to be completed before the end of this year.

After that, Alibaba will become a dual-primary listed company on the New York Stock Exchange in the form of American Depositary Shares (ADSs) and ordinary shares on the Hong Kong Stock Exchange.

After Alibaba's dual-primary listing, international investors are expected to allocate more Alibaba Hong Kong stocks, injecting new liquidity into Hong Kong stock market.

Meanwhile, Alibaba's Hong Kong stocks are expected to meet the qualifications for Hong Kong stock connect, which may create more convenience for Chinese mainland investors to directly invest in Alibaba, according to The Paper.

As for why Alibaba choose dual-primary listing at this time, analysts believe it complies with the current situation and market expectations and it is the optimized business choice to ensure investors' interests, The Paper said.

The major difference between dual-primary listing and secondary-listing is dual-primary listed companies can be included in Hong Kong stock connect programs, which Alibaba is currently not involved in.

To be included in the Hong Kong stock connect programs, a company can attract A-share investors to improve stock liquidity. It is also conducive to returning to A-shares market in the future to achieve "three-place listing", according to yinsfinance.com.

Alibaba aims to serve users worldwide with localized operations and cross-border commerce with access to Chinese manufacturers and consumers with a goal to serve 2 billion consumers globally by 2036, the company said.

"Hong Kong is also the launch pad for Alibaba's globalization strategy, and we are fully confident in China's economy and future," Zhang added.

Similar to Alibaba, an increasing number of companies have secured or are seeking a dual-primary listing in Hong Kong, demonstrating great confidence in the strong momentum of China's economic development and prosperous future. These companies include Chinese video platform Bilibili, Chinese property agency KE Holdings and Chinese fintech platform OneConnect Financial Technology.