"Chinese Pinduoduo and NIO Likely to Delist from US and Relist in Hong Kong"

[Asia Economy Reporter Yujin Cho] Chinese companies such as Pinduoduo and NIO may follow Didi Chuxing in leaving the New York Stock Exchange and seek to relist on the Hong Kong Stock Exchange, Bloomberg reported on the 26th (local time).

The regulatory threats imposed by Chinese authorities on domestic companies suggest that Chinese companies listed in New York with a combined market capitalization of $200 billion (approximately 237 trillion KRW) might consider returning, the report stated.

Bloomberg explained, "As the U.S. strengthens disclosure requirements for Chinese companies and China pressures them to withdraw their U.S. listings citing security reasons, the return of Chinese companies listed in New York to other exchanges has become a hot topic."

It added, "Listing on the Hong Kong Stock Exchange offers the advantage of being simpler and faster than listing on the Chinese mainland while ensuring accessibility for global investors."

(Photo by Reuters)

Bloomberg identified e-commerce company Pinduoduo and electric vehicle manufacturer NIO as the most likely companies to move to the Hong Kong or Chinese mainland stock exchanges.

Pinduoduo, which listed on the New York Stock Exchange in 2018, has the largest market capitalization among Chinese companies at $72.3 billion. Pinduoduo is currently traded only on the New York Stock Exchange.

Pinduoduo's stock price reached an all-time high in February but has since fallen about 70% from its peak amid a sell-off of Chinese stocks.

Similarly, NIO, which also listed solely on the New York Stock Exchange in 2018, has a market capitalization of $51.6 billion. NIO unveiled a second sedan to compete with Tesla's Model 3, but market reaction has been cold due to regulatory risks.

NIO's stock price on the New York Stock Exchange declined about 50% after peaking in February.

Additionally, Bloomberg reported that other Chinese companies listed on the New York Stock Exchange, such as online real estate brokerage KE Holdings, online recruitment platform operator Kanzhun, Tencent Music Entertainment Group, Futu Securities, and online video service (OTT) provider iQIYI, may also move to the Hong Kong Stock Exchange.

This content was produced with the assistance of AI translation services.