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Friday, May 29, 2020, 23:09
JD.com, NetEase 'win Hong Kong approval for listings'
By Agencies
Friday, May 29, 2020, 23:09 By Agencies

JD.com Inc. and NetEase Inc have won approvals to forge ahead with their Hong Kong share sales that could raise billions of dollars.

Hong Kong Exchanges and Clearing Ltd approved the secondary listing applications by the US-listed Chinese mainland tech companies, according to people familiar with the matter, asking not to be identified discussing private matters. Online gaming firm NetEase filed a preliminary prospectus with the exchange later on Friday, a confirmation that it has received the official green light.

JD’s stock sale could raise at least US$2 billion to help the e-commerce firm shore up its position in an increasingly competitive home market

NetEase plans to list in the special administrative region on June 11, while China’s No. 2 online retailer JD aims to debut on June 18, Bloomberg News has reported. 

In a letter to shareholders on Friday, NetEase CEO William Ding said it will seek a secondary listing in Hong Kong.

The Nasdaq-listed firm raked in 59.2 billion yuan (about US$8.4 billion) in net revenue last year, a 15.7-percent growth, according to its unaudited financial results for the fourth quarter and fiscal year ended Dec 31, 2019.  

JD’s stock sale could raise at least US$2 billion to help the e-commerce firm shore up its position in an increasingly competitive home market.

READ MORE: Hong Kong bourse bangs virtual gong on IPO in time of virus

Representatives for Hong Kong’s stock exchange, JD and NetEase declined to comment.

The twin debuts would follow Alibaba Group Holding Ltd’s US$13 billion Hong Kong stock sale last year, hailed as a homecoming for mainland companies and a win for Hong Kong stock exchange, which lost many of the largest tech corporations to US bourses because it didn’t allow dual-class share voting at the time -- a requirement that’s since been relaxed.

ALSO READ: HK's global IPO crown will be difficult to sustain in 2020

Shares in US-listed Chinese mainland companies have see-sawed since senators overwhelmingly approved legislation on May 20 that could bar the country’s firms from American exchanges. The decision cast a pall of uncertainty over hundreds of billions of dollars of shares in some of the world’s best-known companies.


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