Chinese online platform KE Holdings starts operations in Hong Kong

(Bloomberg) – KE Holdings Inc., a Chinese online real estate platform backed by SoftBank Group Corp., listed in Hong Kong without raising funds as it expands its investor base at risk of being forced out of the market American.

The stock opened at HK$30 on its Hong Kong debut. KE Holdings executed a dual primary listing in the Asian financial hub as an introduction, joining a slew of Chinese companies that have started trading closer to home ahead of a potential delisting from U.S. stock exchanges due to regulatory requirements. audit in the United States.

Electric vehicle maker NIO Inc. debuted in the city in March also as an IPO, an easier route for companies already trading elsewhere than a traditional initial public offering. The dual primary status allows shares of KE Holdings in Hong Kong to be part of the Stock Connect program, giving mainland investors the opportunity to trade them.

KE Holding’s IPO in the United States in 2020 raised approximately $2.44 billion, including part of the green shoe. The sale came at a time of excitement for Chinese tech names in New York. Yet after surging on the first day of trading, the stock tumbled alongside several Chinese names amid a sweeping Beijing crackdown on tech companies. It is now down about 41% from the listing price.

Shares in the U.S. depository will remain listed on the New York Stock Exchange, KE Holdings announced last month. Goldman Sachs Group Inc. and China International Capital Corp Ltd act as co-sponsors of the listing in Hong Kong.

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