Tencent-backed KE Holdings gets nod for dual-primary listing in Hong Kong, shares to start trading next week
- KE Holdings’ shares in Hong Kong will starting trading from May 11 under the stock code ‘2423’
- The listing follows other Chinese firms that have turned to Hong Kong amid rising delisting risk from US stock markets
The operator of housing platforms Beike Zhaofang and Lianjia is the latest US-listed Chinese firm to turn to Hong Kong amid rising delisting risks, as they are embroiled in uncertainties surrounding an audit oversight law by Washington.
The development comes as KE was identified by the US Securities and Exchange Commission under the Holding Foreign Companies Accountable Act (HFCAA) on April 21, according to The Paper, a Chinese digital media outlet.
The HFCAA, enacted during the twilight of Donald Trump’s administration, requires US-listed foreign companies to comply with audit inspection rules under the Public Companies Accounting Oversight Board, or face expulsion from American stock exchanges after three consecutive years of non-compliance.
The listing will follow other Chinese firms that have returned to Hong Kong for secondary listings or are transitioning to dual-primary listings, such as Alibaba Group Holding, JD.com and Baidu.