Investors are getting new ways to invest in Chinese tech stocks
Chinese tech giants increasingly choose the local stock market
One of China's largest tech companies chose a local exchange for its acclaimed IPO, ditching Wall Street, where Chinese companies are facing increased scrutiny due to growing geopolitical tensions.
Ant Group Announces Plans for Initial Public Offers in Hong Kong and Shanghai.
Ant is affiliated with the e-commerce giant Alibaba, which has collected record $ 25 billion during its Wall Street debut in 2014. This IPO is still one of the three most profitable placements in the world. Ant owns Alipay, one of the most popular payment apps in China, and also offers financial services such as loans and investments. The Guangzhou-based company is worth about $ 150 billion, according to CB Insights.
The move is to build confidence in Hong Kong. The city's status as the financial center of Asia, is in doubt after the entry into force of the controversial law «About national security». Ant solution coincided with news that the Hang Seng will receive a new index to track the 30 largest tech companies trading in Hong Kong. Ant will probably make this list.
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«Shanghai and Hong Kong market innovations have opened the doors for global investors to cutting-edge technology companies from the world's most dynamic economies, as well as those with greater access to capital markets.», – said Eric Ching, executive chairman of Ant Group.
As a reminder, Hong Kong undertook listing reforms in 2018, which paved the way for technology projects and biotech companies in the Asian financial center..
China's largest SMIC chip manufacturer, attracted 6.6 billion from a secondary listing in the market last week, after which its shares soared more than 100%. E-commerce company JD.com raised $ 4 billion on a secondary listing in Hong Kong last month, while Alibaba raised $ 13 billion there at the end of last year.
Ant did not provide details on when the IPO will take place. A company spokesman declined to comment.
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