Major tech companies prefer Hong Kong listing | CAPEX.com

2020-06-18 11:40:34

Alibaba’s rival sets the bar for this year’s IPOs

The local listing appearance for JD.com was a success. The already Nasdaq-listed e-commerce company raised $3.9 billion when going public on the Hong Kong stock exchange. It opened at $30.83 per share from an initial $29.16.

The company’s Hong Kong debut follows a pattern already established by companies like Alibaba and NetEase, who chose a second IPO in China due to the US regulatory pressures amid the precarious relations between Washington and Beijing. According to the CEO of JD Retail, Xu Lei, the company chose this listing because Hong Kong is one of “the world’s freest market economies.”

JD’s IPO was on the same day as the company’s online festival "shopping extravaganza." More than $33 billion worth of transactions were made.

Last week, the gaming company NetEase debuted in Hong Kong, and raised approximately $2.7 billion, closing the day higher by 6%. Since then, their stocks lost 6%.

Its rival, Alibaba, raised $13 billion in November, is the largest IPO of 2019.

One more tech company considers a Shanghai listing – China's largest chipmaker – Semiconductor Manufacturing International Corp. The company has been delisted from the New York Stock Exchange in June. Also, Baidu is considering a secondary listing as the US “is tightening the control of Chinese stock companies.”

All in all, the secondary listings work as up-lifters for Hong Kong Exchanges and Clearing Ltd, which are looking to bring-on tech and healthcare companies. Now, investors can trade on five major tech firms: JD.com, Alibaba, Tencent, Meituan Dianping, and NetEase.

Sources: fortune.com, marketwatch.com, wfmz.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.