The NetEase building in Beijing on July 26, 2018. (PHOTO / VCG)

NetEase Inc has picked banks for its planned second listing in Hong Kong, according to people familiar with the matter, joining other Chinese mainland technology companies in tapping the city’s stock market for new funds.

The company is working with advisers including Credit Suisse Group AG and China International Capital Corp Ltd on the offering, which it has confidentially filed to the stock exchange, according to persons with knowledge of the matter

The company is working with advisers including Credit Suisse Group AG and China International Capital Corp Ltd on the offering, which it has confidentially filed to the stock exchange, the people said.

The share sale could happen as soon as the second half of this year, one of the people said. The Hangzhou-based online gaming and entertainment company, which currently trades on the Nasdaq, has a market value of about US$43 billion.

ALSO READ: Sources: HKEX discussing new listings with Ctrip, NetEase

No final decision has been made on the details of the offering including size and timeline, the people said. Representatives for NetEase, Credit Suisse, and CICC declined to comment.

NetEase was among the Chinese mainland firms that had discussed secondary listings with Hong Kong Exchanges & Clearing Ltd after Alibaba Group Holding Ltd raised US$13 billion in its 2019 secondary share sale, Bloomberg News reported in January. 

E-commerce giant JD.com Inc has also filed confidentially for a second listing in the financial hub, people familiar with the matter have said.

ALSO READ: JD.com said to file for US$2b Hong Kong second listing 

Shares in Hong Kong Exchanges & Clearing extended gains to as much as 2.9 percent following the Bloomberg News report.

Sales of mobile games are surging this year as coronavirus-driven lockdowns and other social distancing measures have led to more time and money spent on gaming, according to Bloomberg Intelligence analysts Matthew Kanterman and Vey-Sern Ling.

READ MORE:China's mobile games revenue surges 40% in Q1

Tencent Holdings Ltd. and NetEase are the market leaders in iOS mobile games and the analysts expected the duo to maintain their leads. NetEase has a 6.1 percent share of the category, according to analytics firm Sensor Tower.

Games developed by NetEase are among the most popular on the Chinese mainland, including the hit titles Fantasy Westward Journey 3D and Knives Out. The company also operates international online games locally, such as Activision Blizzard Inc’s World of Warcraft.

READ MORE: Many mainland companies to have secondary listing in HK

While still reliant on gaming for the bulk of its revenue, NetEase is competing with Tencent and Alibaba to provide a diverse set of online services, including music streaming and online education, to the world’s second-largest economy.