Chinese cloud service provider seeks dual listing in Hong Kong after New York stock price halves overnight
- Kingsoft Cloud said a dual listing in Hong Kong would provide shareholders with ‘greater liquidity and protection’ amid an evolving market environment
- Chinese tech companies are growing increasingly uneasy about the threat of being delisted in the US amid heightened regulatory pressure
A New York-listed Chinese cloud computing company said it is seeking a secondary listing in Hong Kong after its stock price lost 48 per cent on Monday, amid a wider rout for the country’s tech sector as regulatory pressure mounts in the US.
In a statement published on its website on Tuesday, Kingsoft Cloud Holdings said a dual listing in Hong Kong would “provide shareholders with greater liquidity and protection amid an evolving market and regulatory environment”. It added that its plan is “subject to regulatory approvals and market conditions”.
The Beijing-based company’s announcement is the latest sign that Chinese tech companies are growing increasingly uneasy about the threat of being delisted in the US if auditors fail to open accounts for inspection by US watchdogs.
While seeking a secondary listing has been a well-trodden path for Chinese tech stocks – Tencent Holdings, Alibaba Group Holding, Baidu and NetEase all have dual listings, among others – making the transition is not always smooth-sailing.
Didi Chuxing, the Chinese ride-hailing giant that angered Beijing regulators with its New York listing, said in December that it planned to delist there in favour of a Hong Kong listing. But its plan is still in limbo after its stock price tumbled to US$1.76 on Monday, or about a tenth of its peak last summer.