JD.com Is Going To List In Hong Kong Exchange With Over 100 times Over-subscription

JD.com, the No.2 online retailer in China, is going to start its secondary-listing in Hong Kong Exchange on June 18 to raise as much as HK$30 billion.

Stocks (2)

JD.com, the No.2 online retailer in China, is going to start its secondary-listing in Hong Kong Exchange on June 18 to raise as much as HK$30 billion.

The media said the over-subscription of JD.com would be around 180 times as of June 11 and the company would set the IPO at HK$226. JD.com's ADR stock fell 5.7% to $57.24 yesterday, which converted to around HK$222.6, as the global market slumped on the fear of a second wave of coronavirus.

In fact, Chinese technology companies are interested to kick off its secondary-listing planning in Hong Kong Exchange as the U.S. Senate passed legislation that could restrict Chinese companies from listing on American exchanges or raise money from U.S. investors, unless they abide by Washington's regulatory and audit standards. 

Yesterday, NetEase started to trade on the Hong Kong Exchange with the closing prices at HK$130.2, higher than the IPO price around 5.8%.

Alibaba, JD.com's major competitor, is also listing in Hong Kong Exchange since November 2019. In 2020, the share prices of JD.com rose more than 60% year to date in the U.S. market, while Alibaba was just up around 1%. In the price action, JD.com is better than its competitor.

Recently, JD.com announced that its 1Q net income was 1.1 billion yuan, down from 7.3 billion yuan, on revenue of 146.2 billion yuan, up 20.7% on year.

On a daily chart, JD.com's ADR stock has recorded a series of higher tops and higher bottoms since March low, indicating a bullish outlook.

Currently, although the stock posted a pullback, it is still supported by the rising 20-day moving average.

Bullish readers could set the support level at $49.30 (the previous low), while the resistance levels would be located at $64.80 (100% measured move) and $74.3 (161.8% Fibonacci projection).

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.