JD.com To List In HK, Eyes US$3 Billion Funding

Mainland online retailer, JD.com, has filed a secondary listing application in Hong Kong, paving its way for its shares to trade in Hong Kong possibly by June 18.

Reports say the company plans to start its fund raising of about US$3 billion next week. If the plan goes ahead, it would be the third US listed mainland tech company to come to Hong Kong under dual class structure.

The filing comes on the same day as online gaming firm NetEase, which was already listed on the Nasdaq, told investors it was planning to price its Hong Kong listing at HK$123 for each share, raising about HK$20 billion.

Trading is scheduled to begin on June 11.

The online gaming firm had cited a possible rule change in the United States may end up seeing the company de-list from the market there.

On Thursday, US Secretary of State Mike Pompeo warned American investors against fraudulent accounting practices at China-based companies and said the Nasdaq's recent decision to tighten listing rules for such players should be "a model" for all other exchanges around the world.

At the same time, the Chief Executive of the Hong Kong Exchanges and Clearing Charles Li, said he expected 2020 to be “a big year” for what he called “returnees” from US markets.

Many Chinese companies that listed in the United States did so because they could not qualify to list on the Hong Kong exchange, which until recently had more restrictive listing standards on issues like governance rights and dual class shares, Li said.

Mainland retail giant Alibaba was the first US-listed company to have made use of the rule change to list in Hong Kong last November. (Additional reporting by Reuters)