After Netease, Pinduoduo, another US-listed Chinese tech company, is set to return to Hong Kong for a secondary listing, according to Tencent News.
The report said it identified CICC as one of its sponsors. Citing sources, the report said Pinduoduo originally planned to submit its application in mid-June but did not rule out a speed-up.
Pinduoduo is able to "speed up" because the Listing Committee of the Hong Kong Stock Exchange is fully committed to pushing Chinese companies that have recently listed in the United States to return to Hong Kong for a secondary listing, giving the green light to all Chinese companies listed in the United States to "speed up" their listing in Hong Kong.
On July 27, 2018, Pinduoduo, which was only 34 months old, went public in the US with Goldman Sachs and CICC as its underwriting team.
Pinduoduo released its first earnings report of the year on May 22, its revenue of 6.541 billion yuan, up 44% year-on-year, a net loss of 3.170 billion yuan, compared with a net loss of 1.379 billion yuan in the same period last year has expanded.
However, Pinduoduo maintained a user growth rate of more than 40% in the first quarter, with an average monthly live user count of 487 million, up 198 million from the same period in 2019.
Another US-listed Chinese company, Netease, has also entered the process of listing back in Hong Kong and has been welcomed.
June 2 was the first day of Netease's IPO, and as of 6 p.m., HK$29 billion in financing subscriptions had been recorded, which was already 44.81 times the total amount of the public offering.
The actual oversubscribed multiple is higher than 43.81 times, as the amount of financing is not counted against the investor's margin.
In a prospectus announcement released on Monday, Netease set a cap of HK$126 on the prospectus price for a return listing in Hong Kong.
According to media reports, JD.com, an e-commerce operator, has also been approved by the Hong Kong Stock Exchange Listing Committee to make a secondary listing in Hong Kong.
About 19 Chinese stocks listed in the US are eligible for secondary listing in Hong Kong, including Baidu, TAL Education and New Oriental, in addition to NetEase and JD.com, CICC said in a report earlier.
