JD.com stock jumps in Hong Kong debut

0
13


In Stock JD.com Inc. rose on its first day of trading in Hong Kong, as the Chinese e-commerce, the company completed a secondary listing to coincide with its flagship annual sales of the event.
JD.com follows larger rival Alibaba Group Holding Ltd. and the Chinese online-gaming group NetEase Inc. to obtain a secondary listing in Hong Kong. The deals give companies lists of more and more to their domestic market, and came as tensions have increased between the UNITED states and China into account issues such as financial regulation and accounting standards.

Thursday morning, Hong Kong, JD.com shares rose 4.2% to HK$235.60, from an offer price of HK$226.
That helped bring the share price closer in line with that of its outstanding American depositary receipts, which closed Wednesday at a record high of US$62.01. Each deposit is the value of the equivalent of two to Hong Kong shares. The U.S. stock market has gained 76% this year.

The company, which has Tencent Holdings Ltd. and wal-mart Inc. among its shareholders, already listed on the Nasdaq Stock Market, in 2014. It raised $ 3.9 billion Hong Kong stock sale. Underwriting, the banks have the possibility to increase the final deal size by 15%.
The trading debut has coincided with the company’s annual June, sales of the event, was the equivalent of the Singles Day shopping festival, Alibaba hosts in November of each year.
The coronavirus pandemic has given Chinese e-commerce an additional boost as consumers shun the physical stores to online shopping because of social distancing and travel restrictions. JD.com in May, said it expected net sales to grow 20% to 30% in the three months to June, after nearly 21% growth in the previous quarter. The two digits of a year.
The secondary listing contributes to the expansion of JD.com if a shareholder of the base, making it easier for clients to become shareholders, and trading hours is more convenient for the Asian investors.
NetEase and JD.com the share of sales that the prospect of Beijing imposed for national security law raises questions about Hong Kong’s future as an international financial and commercial center. The strong demand for the new shares has supported the Hong Kong dollar, causing an intervention to stop the pegged currency strengthening too much.
The secondary lists are a boost to the bourse operator Hong Kong Exchanges and Clearing Ltd., which has sought to attract more tech and health care lists, in part, by the evolution of its listing rules. Investors can now buy and sell Hong Kong shares in the five major Chinese tech companies: Alibaba, JD.com, Meituan Dianping, NetEase and Tencent.
Write to Joanne Chiu at [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here