NetEase jumps as much as 10 per cent on first day of trading after completing secondary offering in Hong Kong
- NetEase follows Alibaba in adding to its US listing in Hong Kong
- Such secondary listings boost Hong Kong’s status as an international financial centre
Shares of NetEase, the world’s second-largest mobile gaming company, surged on the first day of trading in Hong Kong, underscoring investors’ penchant for the fastest-growing part of China’s economy.
The stock jumped by 6 per cent from its offer price to HK$130 at the close on Thursday after rising by as much as 10 per cent in intraday trading. That compared with the first-day gain of 6.6 per cent for Alibaba Group Holding, parent of the South China Morning Post, that completed its secondary offering in the city in November.
NetEase’s American depositary receipts (ADR) added 3.8 per cent to US$424.98, close to a record set on June 5, on the Nasdaq in overnight trading, extending its gain to 39 per cent this year. Each ADR represents 25 Hong Kong-traded shares.
The stock’s closing price implied a 1.1 per cent discount to the ADRs.
“Hong Kong’s economy used to lack such new-economy shares,” said Banny Lam, managing director at China Everbright Bank International Investment in Hong Kong. “Now the return of big ones will further diversify the Hong Kong market and consolidate the status as an international financial centre.”