Chinese online retailer JD.com is reportedly eyeing a secondary listing on the Hong Kong stock market as early as mid-2020, following rival Alibaba’s blockbuster$13 billion listing in November.
Why it matters:JD.com could be the latest addition to a group of Chinese tech firms that are gearing up for a dual listing in Hong Kong.
- A successful listing would be a vote of confidence for China’s e-commerce market as well as the broader economy, which is struggling to return to full capacity following country-wide lockdowns. However, the economic effects from the pandemic as well as the protests in the city adds uncertainty to a potential Hong Kong debut.
- Chinese search engine Baidu, online travel platform Trip.com, and Netease, China’s second-biggest gaming firm, are reportedly planning to dual list in Hong Kong.
- The possible listing would further boost Hong Kong’s status as a major capital markets hub.
Details:JD.com is in discussions with investment banks including UBS and Bank of America on details about a secondary listing, Hong Kong Economic Journal reported, citing people with knowledge of the matter.
- A spokesman for JD.com declined to comment on the news.
- The two banks underwrote the company’s 2014 initial public offering (IPO) on Nasdaq, and have a long history of working with the company.
Context: In January 2018,founder and CEO Richard Liu indicatedthat the company was considering a dual listing either in Hong Kong or mainland China.