Alibaba Group Holding Limited’s stock experienced an upward trend in Hong Kong following its direct accessibility to mainland Chinese investors for the first time.

The Inclusion of the e-commerce company’s shares in the Stock Connect program, which establishes a connection between the Shanghai and Shenzhen stock exchanges and the Hong Kong exchange, commenced on Tuesday.

Consequently, the stock witnessed a notable gain of 4.2, surpassing its previous peak on August 16th. Furthermore, the trading volume exceeded three times the average daily volume observed over the preceding three months.

This highly anticipated inclusion is projected to attract approximately $20 billion in inflows into the stock over the course of the upcoming year. It is anticipated that mainland investors will accumulate a stake exceeding 10% in Alibaba, as per the insights provided by Bloomberg Intelligence (BI).

Additionally, BI analysts suggest that this development should contribute to narrowing the valuation gap between Alibaba and its competitor, PDD Holdings Inc.

The e-commerce company’s shares have experienced a 10% increase in Hong Kong this year, outperforming the Hang Seng Tech Index, which has declined by 8.3%. This inclusion is particularly significant considering the company’s recent revenue shortfall in the second quarter, which was attributed to China’s sluggish consumption and its impact on retail sales momentum.

According to specific exchange regulations, a stock is eligible for inclusion in the Stock Connect program if it is part of the Hang Seng Composite LargeCap Index and holds primary listing status.

Alibaba, despite being one of the prominent Chinese stocks, was previously unable to join the program due to its secondary listing status.

However, the company’s recent upgrade to dual-primary listing status in both Hong Kong and New York in August has paved the way for its inclusion and availability for mainland trading.

A call option contract speculating on Alibaba’s potential rise of 4.2% to HK$85 per share by September 27th emerged as the most actively traded option contract in Hong Kong on Tuesday, as indicated by data compiled by Bloomberg.

The hong Kong Exchange releases daily turnover figures for the top ten traded stocks through designated links after market close.

Among the Hong Kong-listed stocks made accessible to mainland traders on Tuesday, Mongolian Mining Corporation experienced an 8% increase. Conversely, Shimao Group Holdings Ltd. Suffered a significant decline of 23% and was subsequently removed from the links.