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Pinduoduo, NIO are among 27 US-traded stocks eligible to list in Hong Kong, Goldman says
- Pinduoduo and NIO are among the US-listed Chinese companies that could apply for secondary listings in Hong Kong, says Goldman Sachs
- Hong Kong is likely to welcome returning Chinese companies as it seeks to bolster IPO rankings and help companies amid regulatory pressures
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As many as 27 US-traded Chinese companies could be eligible for a secondary listing in Hong Kong, with the city likely to embrace companies that want to come home amid rising risks of US-listed Chinese firms being delisted, according to a report by Goldman Sachs.
Some 27 of them, including the e-commerce giant Pinduoduo and electric carmaker NIO, with a total market cap of around US$250 billion, would likely qualify for secondary listings in Hong Kong, according to a report published by the US investment bank on Monday.
Goldman’s list may shed light on potential candidates for future secondary listings in the city. Sentiment is currently fragile, as the American depositary receipts (ADRs) of Chinese companies and tech firms listed in Hong Kong have plummeted following Didi Global’s decision to delist in the US amid a cybersecurity probe by Beijing.
A Hong Kong listing would give foreign investors in these companies another avenue to cash out, as they will be able to convert their ADRs into Hong Kong shares, as the two will be fully interchangeable.
Pinduoduo and NIO are the largest Chinese ADRs in the list compiled by Goldman, with market value of US$114.3 billion and almost US$70 billion respectively. Didi, which has already announced its intention to list in Hong Kong, was the third largest at US$39.2 billion.
Housing transaction services provider KE Holdings, Lufax Holding, Tencent Music Entertainment Group, and e-commerce company Vipshop Holdings were also on the list.
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