Chinese tech giant NetEase has launched a secondary stock exchange listing in Hong Kong as it hopes to raise between ¥14.3 billion ($2 billion) and ¥21.4 billion ($3 billion).
As reported by Reuters, it is expected that Chinese firms will make multiple secondary listings in Hong Kong as China's relations with the US have become strained, leading companies to question whether they can list in New York.
Today, NetEase will begin its institutional book run, which will continue for the rest of the week. Last year, Alibaba became the first Chinese company to take a secondary listing in Hong Kong, with NetEase now the second.
A new trend
Furthermore, it is believed that JD.com will register on June 18th, becoming the third company to do so. Reportedly, it could raise ¥21.4 billion ($3 billion) through shifting 5 per cent of its shares.
As part of its Hong Kong stock exchange listing, NetEase claimed that multiple companies could be delisted in the US should its auditor have failed to obey the US oversight audit after the proposition of a new US legislation.
Last year proved to be a financial success for the Chinese firm, as its revenue increased by 15 per cent to ¥31.5 billion ($4.53 billion). It also started 2020 strong by generating ¥17.1 billion ($2.4 billion) in the first three months.