Kingdee eyes mainland funds from cross-border trading links to drive its cloud expansion

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Kingdee International chairman and chief executive director Xu Shaochun. Photo: Jonathan Wong

Published: 7:15pm, 5 Dec 2016Updated: 8:20am, 6 Dec 2016

Kingdee International Software Group, the biggest enterprise application provider to small businesses in mainland China, expects to raise more cross-border funding under the new Shenzhen-Hong Kong Stock Connect scheme to help drive its cloud computing expansion plans.

“Kingdee has been undervalued for a long time,” company chairman and chief executive Robert Xu Shaochun said on Monday.

“The selection of Kingdee as one of the eligible securities for the Shenzhen-Hong Kong Stock Connect will provide us a convenient channel to attract mainland funds.”

That scheme, which went live on Monday, enables mainland investors to trade in 417 Hong Kong-listed stocks up to a daily quota of 10.5 billion yuan (HK$11.82 billion), while allowing international investors to trade in 881 Shenzhen-listed stocks up to a quota of 13 billion yuan.

Xu expected the new cross-border trading link would “help us to further unleash our potential value”, which meant focusing more resources in the development of its cloud business.

His optimism, however, was dashed on the first day of the cross-border trading scheme, as Kingdee’s share price fell 2.65 per cent to reach HK$3.30 at the close of trading.