JD.com, one of China’s largest e-commerce sites, looks set to price its secondary listing in Hong Kong at HK$226 a share (US$29.16) after investors clamoured to participate in the offer. The Beijing-headquartered firm will raise about US$3.88 billion from the share sale, in what is poised to be the largest fundraising so far this year in the city, according to people familiar with the deal, declining to be named for speaking about a matter that is not public. NetEase, the world’s second-largest mobile games publisher, made its debut in a Hong Kong secondary listing on Thursday after raising US$2.7 billion. US-listed JD.com and NetEase are raising funds in Hong Kong amid rising US-China tension. US politicians are dialling-up their demands to fence off Wall Street from Chinese companies. The US Senate unanimously approved a bill to audit Chinese-American depositary receipt (ADR) listings and stock analysts believe Sino-US financial links will fray further ahead of the 2020 US presidential election. To widen their funding options, some Chinese ADR companies are pursuing secondary listings in Hong Kong. More than 200 Chinese companies trade on US stock exchanges worth over US$1.2 trillion, Bloomberg data showed, of which 32 qualify for secondary listings in Hong Kong, according to China Renaissance. Investors flocked to the share sale by Beijing-based JD.com, oversubscribing to the offer by multiple times, the people familiar said. The overwhelming demand for the stock underscores investors’ belief that Big Tech is emerging from the coronavirus pandemic relatively unscathed. JD.com said last month that it had expanded its logistics network to support growth in online consumption as more traditional merchants move online. The Hong Kong share sale is set to price at a tight 3.9 per cent discount to JD.com’s Nasdaq-traded shares that last closed at US$60.70 a share, the person familiar said. “Returning companies may achieve higher valuations and better liquidity upon stronger investor interest,” said equity research analysts at boutique investment bank China Renaissance in a report released Thursday. The shares due to start trading in Hong Kong on June 18 will be fully fungible with American depositary receipts at a ratio of one ADS to two ordinary shares, according to a deal terms sheet. JD.com’s Hong Kong debut coincides with China’s annual midyear 618 online shopping festival. This year’s event will be the first major shopping event since the end of lockdowns in China after the containment of Covid-19. Companies around the world have started to return to the capital markets, despite a global recession sparked by the coronavirus pandemic. JD.com’s fundraising would be the second-largest globally after Beijing-Shanghai High Speed Railway netted US$4.4 billion during its initial public offering (IPO) back in January, according to data from Refinitiv. JD.com, founded by Richard Liu Qiangdong, launched its share sale on Friday and was already oversubscribed by Monday. The offer was closed to new orders by Wednesday, the people said. International and Chinese long-only investors piled into the share sale and allocations are being decided on Thursday, the people said. If JD.com and its advisers decide to execute an overallotment option, then the size of the share sale could rise to US$4.46 billion. The bookrunners on JD.com’s share sale include Bank of America, UBS and CLSA. JD.com and NetEase are following in the footsteps of South China Morning Post owner Alibaba Group Holding, which raised US$12.9 billion through a secondary listing in Hong Kong last November. Their listings also add up to a vote of confidence in Hong Kong as a financial hub after months of anti-government protests and the economic fallout from the coronavirus pandemic. To compete with other financial hubs, Hong Kong changed its rules in April 2018 to make it easier for companies with dual classes of shares – a structure favoured by technology companies such as Facebook and Google – to seek IPOs as well as secondary listings in the city. The shake-up came after the Hong Kong stock exchange lost out to New York in a bid to host Alibaba’s US$25 billion IPO in 2014. China Renaissance estimates that new economy stocks could account for 30 per cent to 35 per cent of Hong Kong's market capitalisation in the next five to 10 years, up from 26 per cent, leading to higher growth potential, raised valuations, and increasing turnover and sector diversity. “Thanks to recent pro-new economy reforms across HK/China markets, listing options are now less complicated and less time-consuming,” said the China Renaissance analysts.