NetEase shares see sharp jump at opening on first day trading in Hong Kong

Source:Global Times Published: 2020/6/11 12:04:54

The offline shop of NetEase Yeation in Hangzhou, East China's Zhejiang Province Photo: VCG



 Shares of Chinese company NetEase jumped over 8 percent on Thursday, the company's first day of trading since listing in Hong Kong. 

The Chinese internet company priced its secondary listing on the Hong Kong Stock Exchange (HKEX) at HK$123 ($15.87) per share which jumped to HK$133 on Thursday. The company issued over 171 million new ordinary shares to raise over $2.71 billion, making it the biggest public listing on the HKEX this year.

NetEase has been listed on the US' NASDAQ since 2000, and its secondary listing in Hong Kong comes amid increasing pressure faced by Chinese companies in the US. 

A US bill demanding more scrutiny on Chinese companies was introduced in May, which many believe directly threatens to delist Chinese companies on Wall Street. 

Other Chinese companies are also returning to Hong Kong. Chinese e-commerce giant Alibaba launched its secondary listing on the HKEX at the end of last year, opening with a strong debut. JD.com, also an e-commerce platform, is pressing for a secondary listing in Hong Kong within the year. 

NetEase is one of the best-performing companies listed on the NASDAQ. Traditionally seen as a gaming company, NetEase dabbles in a wide range of businesses including e-commerce, music streaming, education and even pig farming. 

Since its NASDAQ IPO in 2000, the company's share value has jumped to more than 90 times its initial offering price, with a 25.2 percent annual yield rate for the past two decades. NetEase Youdao, the online education subsidiary of NetEase, made its debut on the New York Stock Exchange last October. 

NetEase has claimed the HKEX's first secondary listing of the year. Chief Executive of the HKEX Charles Li Xiaojia welcomed the company's share trading on Thursday, saying the debut marks an important day both for the company and the Hong Kong capital market. 



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