(Yicai Global) June 19 -- Shares in Alibaba Pictures Group, a film company under Chinese tech giant Alibaba Group Holding, leaped today after the firm revealed it would withdraw its listing on the Singapore Exchange’s main board.

Its stock [HKG:1060] was up 8 percent at HKD1.08 (14 US cents) when the market closed for lunch.

The company believes it would be favorable to focus on its Hong Kong listing given that it does most of its core business in China, the firm said in a filing to the Hong Kong Stock Exchange yesterday. It believes the move should increase its trading volume in the Chinese special administrative region.

Delisting in Singapore will reduce administrative costs, compliance obligations and legal risks, according to the statement. The firm warned in April that it may have lost up to CNY1.2 billion (USD170 million) in its fiscal year ended March, a result of Covid-19 forcing the closure of movie theaters nationwide and costing cinemas as much as CNY30 billion (USD4.2 billion) in lost box office revenue, almost half of their 2019 takings.

Alibaba Pictures’ shares trade much more frequently in Hong Kong so there is little synergy resulting from the dual listing, the company said, adding that only trading on the HKEX will not adversely affect its share liquidity or potential to raise funds in the future.

Editor: James Boynton