After a successful secondary listing in Hong Kong, JD.com's financial technology unit, JD Digits, is reportedly now looking to list its shares in Shanghai's Star Market tech innovation board. The planned initial public offering (IPO) will be the latest in a growing number of Chinese Fintech firms looking to raise capital on the mainland's NASDAQ-style board.

According to a filing with the China Security Regulatory Commission submitted over the weekend, JD Digits has tapped four Chinese investment banks to assist in its planned share sale in Shanghai. Goutai Junan Securities, Huajing Securities, Citic Securities, and Minmetals Securities had reportedly all singed pre-listing tutoring agreements with the company last week.

JD Digits, which was previously named JD Finance, is worth an estimated 133 billion yuan or roughly $18.8 billion. The company was able to significantly increase its market valuation after successfully completing its Series B funding round in 2018 after it spun off from JD.com.

When it was first established, the company's core business had been the development of financial tech solutions for other companies. Since then, the company has expanded its business to include other high-tech fields such as artificial intelligence, internet of things (IoT), blockchain technology, and big data. JD Digits utilizes these different technologies to provide companies with innovative solutions to improve efficiencies, reduce costs, and optimize user experience.  

With the US continually making it harder for Chinese companies to list in its capital markets, more tech firms are now choosing to raise much-needed capital at home. The NASDAQ recently unveiled plans to change its rules with the aim of discouraging Chinese firms from listing on its board.

The escalating tensions between China and the US have been a boon to local capital markets, with mainland China and Hong Kong reporting a surge in IPO applications. Shanghai's Star Market tech innovation board, which was established last year as part of the country's efforts to support tech innovation, is particularly attractive to local high-tech firms. Unlike Shanghai's main board, the Star Market does not require new issuers to be profitable. The waiving of the requirement, which is mandatory on the main board, is a massive opportunity for budding Chinese tech companies.

Both JD.com and JD Digits have declined to comment on the latter's planned listing on the Shanghai Star Market. Details regarding its pricing and its listing date have yet to be announced. News of the JD Digits' plans to list its shares in Shanghai comes just weeks after JD.com's secondary listing in Hong Kong.