By mid-morning, NetEase had returned some of its profits and traded last 8% at $ 133 Hong Kong ($ 17).
The gambling company, which has been trading in New York since 2000, turned to Hong Kong for a secondary bid as Chinese companies’ control of Wall Street intensified and US-China tensions escalated.
It’s not the only thing:
E-commerce giant JD.com (JD)
he hopes to raise $ 4 billion on his secondary list next week.
NetEase launched as a Chinese web portal in the late 1990s and expanded into online games in 2001. It is the second largest mobile gaming company in the world, behind Tendent (TCEHY)
, according to App Annie. The company says its most popular games are Identity V, Knives Out and Rules of Survival, among others.
raised $ 2.7 billion on Hong Kong’s list. The company said it wanted to use the money to expand its online gaming offerings to high-end markets such as Japan, the United States, Europe and Southeast Asia. It also intends to use some funds to fuel more innovation.
But the company also made it clear in stock market speculation that it believes the United States could become more hostile to Chinese companies as regulators and lawmakers consider new rules that would lead to stricter controls. Some restrictions could even make it harder for companies to make or continue their transactions in New York.
U.S. Secretary of State Mike Pompeo praised Nasdaq last week for proposing new compliance rules that could affect Chinese companies, adding that other exchanges need to consider similar regulations.
“American investors should not be exposed to hidden and unjustified risks associated with companies that do not comply with the same rules as American companies,” Pompeo said in a statement. “Nasdaq’s action must serve as a model for other exchanges in the United States and around the world.”
The U.S. Senate, meanwhile, has unanimously passed a bill that would bar companies that refuse to open their books from posting on Wall Street after an accounting scandal that Lucky coffee (LK)
, which began trading in New York last year. The bill’s bilateral partners said the goal was to “kick off misleading Chinese companies from US exchanges”. The bill must still be passed by the US House of Representatives before it can be passed.
Nasdaq moved to remove Luckin after the Chinese coffee chain admitted that a significant portion of its revenue last year had been covered. Luckin has appealed against the decision and its shares have resumed trading. Its stock has fallen by 90% this year.
NetEase’s debut surpassed that Hang Seng Index (HSI)
, which fell 1.2% in morning trading. Markets elsewhere in Asia also fell lower after the Federal Reserve chairman Jerome Powell’s subdued remarks. Powell said Wednesday that the US economy remains volatile and millions of people will be out of work for some time.
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