China’s e-commerce giant starts stock offering in Hong Kong

HONG KONG (XINHUA) – E-commerce giant started yesterday its stock offering in a secondary listing in Hong Kong, the third United States (US)-listed Chinese company to do so following Alibaba and NetEase. plans to raise at most HKD35.65 billion (about USD4.6 billion) through its offering of 133 million shares during the subscription till Thursday, with a price of no more than HKD236.

The company is set to begin trading on Hong Kong Exchanges and Clearing Limited (HKEX) on June 18.

The move came in an emerging wave of US-listed Chinese companies turning to Hong Kong for a secondary listing. Alibaba made its debut in November, and NetEase will begin trading on Thursday.

HKEX Chief Executive Charles Li has predicted that many US-listed companies will return to Hong Kong this year, which will boost initial public offerings (IPOs) in Hong Kong.

The Hong Kong exchange reformed its listing rules in 2018 to allow the listing of companies with weighted voting right structures and attract more new economy companies. The fund-raising of new economy companies on the exchange surpassed HKD300 billion in the past two years.