NetEase and Set for Secondary Listings in Hong Kong

Multiple sources have confirmed that Chinese tech companies NetEase and are set for secondary listings in the Hong Kong Stock Exchange in June.

SEE AlSO: NetEase First Quarter Revenue Beats Expectations, Posts $502 Million Net Income

It’s revealed that NetEase will first launch a public offering next week, possibly from June 2 – 5, aiming to raise an estimated $2-3 billion (HKD 15.6-23.4 billion), higher than the amount of $1-2 billion that was speculated earlier. As for JD, it’s preliminarily set on June 8 – 11 to raise public funds up to $3 billion. 

If the leaked schedule is accurate, investors that pay for a NetEase secondary offering subscription can have their money withdrawn in time for JD’s subscription. 

Last week, the U.S Senate unanimously passed the Holding Foreign Companies Accountable Act, which would require all companies listed on U.S. exchanges to submit audits to the U.S. The legislation is heading for the House of Representatives, and is expected to be signed into law by President Donald Trump. People are concerned that once the law is enacted, Chinese companies could no longer list their shares on the U.S. stock market.

Spokesmen of the two Nasdaq-listed companies have yet to comment on the Hong Kong secondary listing rumors.