Chinese e-commerce giant JD soars on Hong Kong debut

AFP
Hong Kong
Chinese e-commerce giant JD.com soared nearly six percent on its Hong Kong debut on Thursday, after raising almost $4 billion in an initial public offering that was the world’s second-biggest this year.
The new debut comes as Chinese companies — especially those in tech — eschew Wall Street because of rising tensions between Washington and Beijing.
It is also a shot in the arm for Hong Kong as fears mount over the potential fallout of Beijing’s plan to impose a new national security law on the city banning subversion and foreign interference.
JD, which listed on the Nasdaq in New York in 2014, opened at HK$239 in early morning trading in Hong Kong, compared with its listing price of HK$226. It ended the day at HK$234.00.
It’s been a frenetic few weeks for Hong Kong’s exchange.
Earlier this month fellow Chinese tech giant NetEase raised $2.7 billion in its IPO and also saw a similar six-percent gain on its first day of trading.
Chinese companies are increasingly looking to raise capital closer to home given the soaring trade and diplomatic tensions between the US and China.
Overseas investors are also paying closer attention to the transparency and health of Chinese companies after the once-booming and US-listed coffee chain Luckin Coffee Inc crashed following an accounting scandal.
“We have come to Hong Kong not just because we want to share our promise and development with more clients… but because we have absolute confidence in China and the future of China’s economy,” JD’s Retail Chief Executive Officer Xu Lei said at the opening ceremony.
“If JD wants to become a truly global business, it needs more international capital and not restrict itself to a single country or region,” he added.