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