NetEase (NTES 2.85%), the Chinese gaming company that trades in the U.S., has confirmed it's pursuing a secondary listing on the Hong Kong Stock Exchange.
In a Securities and Exchange Commission filing, NetEase announced it filed a listing application with the Hong Kong Stock exchange as part of its secondary listing. The company said the Nasdaq will remain its primary listing venue. NetEase didn’t disclose in the filing the amount of capital the Chinese tech stock is aiming to raise or when it will take place. Earlier this month Reuters reported NetEase was planning on launching the secondary offering on June 11, raising as much as $2 billion.
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NetEase’s plan to list on the Hong Kong Exchanges comes as tensions between the U.S. and China are intensifying. In May the U.S. Senate passed the Holding Foreign Companies Accountable Act or HFCAA, which would force companies outside of the U.S. to meet specific criteria or face a U.S. stock exchange delisting. The House of Representatives hasn’t signed off on the bill yet. Meanwhile, President Donald Trump plans to hold a press conference later Friday on China but didn’t provide any details. Depending on what he says, it could have wide ramifications for Chinese tech stocks.
JD.com (JD -0.74%), the Chinese eCommerce company, is also gearing up to list on the Hong Kong Stock Exchange via a secondary offering as well. Reuters reported JD.com could raise $3 billion, unloading about 5% of its shares outstanding.
