Ping-An (Insurance) Group-backed Chinese online lender Lufax Holdings has applied to list in Hong Kong, joining other US-listed Chinese companies seeking a float closer to home despite the lower risk of delisting following progress on an auditing impasse between China and the United States. The fintech company, which is based in Shanghai and is listed on the New York Stock Exchange (NYSE) , has filed to list through introduction, which means it will not be raising additional funds or issuing new shares, according to a filing made with the Hong Kong stock exchange on Wednesday. “It is desirable and beneficial for the company to have dual primary listing status in both Hong Kong and the NYSE, so that the company can have ready access to these different equity markets when opportunity arises,” Lufax said in the filing. The listing will broaden its investor base and enhance its share liquidity, which is also in line with Lufax’s focus on operations in China for long-term growth and strategic development, it added. Listings through introduction have increasingly found favour among US-listed Chinese firms seeking dual listings in Hong Kong. Lufax, for instance, is following in the footsteps of Nio , Spotify-backed Tencent Music and Futu Holdings , Hong Kong’s largest online retail broker, which sought listings in Hong Kong last year. Futu’s listing has been paused amid an ongoing investigation by Beijing. Lufax tweaks business as China clamps down on Big Tech lending Lufax focuses on small businesses in China and is the second-largest non-traditional financial services provider in the sector in terms of outstanding small business loans, according to the company. Ping An holds an about 41 per cent stake in Lufax through its subsidiaries An Ke Technology and Ping An Overseas Holdings. As of September 30 last year, Lufax had 6.6 million clients and had given out 636.5 billion yuan (US$94.74 billion) in retail credit. The fintech firm’s net profit dropped 30.6 per cent in the first nine months of 2022 from the same period a year earlier. Total income was almost flat – down 0.4 per cent – in the first three quarters in 2022 from a year earlier. Lufax’s shares in the US jumped 7.9 per cent to US$3.29 overnight following its announcement. Its Hong Kong listing comes despite the world’s two largest economies making progress on tackling a long-running audit dispute. The US’s Public Company Accounting Oversight Board completed its inspection of US-listed Chinese firms’ audit records in Hong Kong in December. This reset the clock for Chinese companies looking at potential delistings from US exchanges for failing to turn over audit results for three straight years in compliance with Washington’s audit requirements.
