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

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.