HK bourse in talks on new listings with Ctrip, Netease: Sources

HONG KONG • Hong Kong Exchanges and Clearing (HKEX) is discussing secondary listings with Chinese technology firms, including Trip.com Group and Netease, after Alibaba raised US$13 billion (S$17.5 billion) in its 2019 share offering in the city, according to people familiar with the matter.

Bourse officials have held follow-up talks with the two US-listed firms about the possibility of a secondary share sale, said the sources. The discussions are preliminary and subject to change, they added.

HKEX has said it is seeing a spike in inquiries about secon-dary listings from Chinese firms. The interest comes at a time when United States scrutiny of Chinese firms has intensified.

A decision to proceed would see China's biggest online travel service provider and second-biggest gaming company - with a combined market value of about US$60 billion - follow in the footsteps of Alibaba Group Holding, which last year pulled off the financial hub's largest equity offering since 2010.

Trip.com, also known as Ctrip, and HKEX declined to comment. A Netease representative had no comment when contacted.

The Hong Kong bourse introduced new rules to allow dual-class shares after initially resisting such a change, a move that had prompted Alibaba's decision to debut in New York in 2014.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on January 03, 2020, with the headline 'HK bourse in talks on new listings with Ctrip, Netease: Sources'. Print Edition | Subscribe