China's second-largest online retailer JD.com raises 3.2 billion pounds after it enlisted in the Hong Kong Stock Exchange last Thursday. Its share value increased by more than five percent, making its second-most massive sale for 2020.
JD.com listed on the Hong Kong stock exchange last week after the United States pressured Chinese companies to abide by stricter requirements for listing in the New York stock exchange. The move was a response to the growing geopolitical tensions between China and the US. Several Chinese companies based in China are also considering enlisting with the Hong Kong stock exchange since then.
The initial public offering (IPO) of Nasdaq-listed gaming giant NetEase coincided with JD.com's most significant online sales event in Hong Kong's listing. Last week, shares of NetEase made its solid stock market debut and raised about 2.7 billion USD.
The listing of JD.com was marked as its second most significant for the year. This was after the Beijing-Shanghai High-Speed Railway project raised 4.3 billion USD last January. In an interview last Thursday, the vice president of JD Retail Ling Chenkai said that the listing is a huge deal for the company since it helped promote the brand within Greater China. He added that Chinese and Asian investors can now understand the company better. The improved knowledge improved investor confidence, including that of its customers.
Last November, the company's toughest competitor Alibaba listed on the New York stock exchange. It became the first US-traded Chinese companies to debut in the Hong Kong stock exchange as its secondary listing. The listing was valued at 13 billion USD.
According to the asset manager of Singapore-based SGMC Capital, the listings manifested the significant changes that are happening in the global markets now. He claimed that it highlights the political landscape of a rapidly evolving world. He added that the globalization phenomenon in recent years had been quickly collapsing and there are added barriers to international business dealings globally. He finished by saying that this occurrence resulted in a substantial increase in protectionism.
The financial dealings and shifts to the Hong Kong stock exchange from the New York stock exchange came after increased scrutiny over the Luckin Coffee accounting scandal. Last April, the firm was revealed to have engaged in 310 million USD fake transactions. The company's Nasdaq listing was also recognized then one of China's few successful stock debuts in the year 2019.
The renewed interest of Chinese companies in Hong Kong's stock market also emanated over concerns of Beijing's National Security Law. The said law would make the city less attractive to businesses.
Bondurri forecasted that there would be an increasing number of Chinese companies that would follow JD.com and Alibaba's move to enlist in Hong Kong's stock exchange.
