Chinese giant Alibaba’s HK rally is at risk from three misconceptions

Alibaba Group Holding Ltd.’s landmark $11 billion share sale and listing in Hong Kong on Nov. 26 was galvanized by expectations the Chinese e-commerce giant will attract a vast pool of capital from its home country. But some investors caution against unrealistic expectations, especially by mainland investors, and highlight certain restrictions that still govern — and potentially curtail — trading activity in Alibaba’s Hong Kong shares.