JD Sports to raise US$2 billion in Hong Kong secondary listing

Hong Kong
Published:  10 June, 2020

The sneaker and sport fashion retailer is reported to have filed for a secondary listing in Hong Kong on June 5.

JD.com is said to have filed a preliminary prospectus on June 5 with the Hong Kong stock exchange. The U.S. listed company is allegedly seeking a foothold closer to home amid rising U.S. - China tensions. JD.com could launch the offering to raise at least US$2 billion in the coming weeks, according to Bloomberg News media. Reportedly, U.S. capital markets are becoming frosty toward Chinese firms, and there have been fears over the impact of national security legislation set to be imposed on Hong Kong, including the resumption of protests in the city.

On June 5, Mike Pompeo, the U.S. Secretary of State, warned U.S. investors against fraudulent accounting practices at China-based companies and said the Nasdaq's recent decision to tighten listing rules for such players should be "a model" for all other exchanges around the world. Donald Trump has also issued a memorandum calling for recommendations to be issued within 60 days to protect U.S. investors from what he said was China's failure to allow audits of U.S. listed Chinese companies.

JD.com is already listed on Nasdaq, where it raised US$1.78 billion when it was floated in 2014.

Sources: Bloomberg/Straits Times