Alibaba Group Holding Ltd.'s (BABA) - Get Report  US-listed stocks traded lower Wednesday after Asia's most valuable tech company said it was planning to raise $13.4 billion from selling shares on the Hong Kong stock exchange.

Alibaba told the U.S. Securities and Exchange Commission that it has applied for a secondary listing in Hong Kong, but noted that the New York Stock Exchange will remain its primary listing venue. The 12.5 million share filing comes amid speculation that that the e-commerce and cloud computing giant could sell as much as $13.4 billion in new shares in the planned Hong Kong offering.

Japan's Softbank (SFTBY) , Alibaba said, will own around 25.2% of the group once the Hong Kong sale is completed.

Alibaba's U.S.-listed shares, which have gained 36.4% so far this year, were marked 1% lower at $185.10 each following release of the SEC filing.

The choice of Hong Kong's stock exchange for the Alibaba listing, which could be the biggest cross-border secondary offering of the year, comes amid the China-controlled territory's most serious political and social challenges since the 1997 handover.

The five months of protests, triggered by a since-withdrawn bill that would have granted significant extradition powers to Beijing, has tipped the Hong Kong economy into recession and sent the Hang Seng index into an 8% tailspin.

Alibaba, meanwhile, has been firing on all cylinders of late, notching a better-than-expected $38.4 billion in Singles' Day sales earlier this week, defying predictions amid the weakest Chinese economy in more than three decades, and topping Wall Street forecasts with solid third quarter earnings thanks to e-commerce and cloud computing gains.