Alibaba's $200 Billion Stock Surge Reminds Hong Kong of Its Loss

(Bloomberg) -- Hang Seng Indexes Co. has unveiled a plan to liven up its China benchmark by including non-state controlled firms such as Tencent Holdings Ltd. One company that won’t be on that list is Alibaba Group Holding Ltd., which decided in 2014 to sell shares in the U.S. rather than Hong Kong after the city’s regulator stood firm on a ban on dual-class listings.

While Tencent has added $169 billion in this year, it’s dwarfed by Alibaba’s $202 billion surge, which has made Jack Ma’s company China’s most valuable. Alibaba’s absence is partly why Hang Seng equity gauges are trailing MSCI Inc.’s Chinese index, which includes both. The loss is also a sore reminder to the city’s exchange operator of its failure to make Hong Kong’s market the natural home for China’s tech firms.