Hot Chinese ADRs Gained in Morning Trading, With JD.com Surging Over 8%

Hot Chinese ADRs gained in morning trading.

JD.com rose over 8%; Pinduoduo , NIO rose over 5%; Alibaba, Tencent Music rose about 4%.

Jingdong Property Inc. and Jingdong Industrials Inc. submitted listing applications to the Hong Kong Stock Exchange, according to separate statements. The firms didn’t disclose fundraising amounts, valuations or prices for the shares. JD.com would hold more than 50% of both companies after completion of the spinoffs, according to exchange filings.

The move comes days after larger rival Alibaba Group Holding Ltd. spurred anticipation for a revival of China’s tech IPO train. This week, it unveiled plans to split into six independent businesses, each of which can pursue funding and separate listings.

They are the latest Chinese companies choosing to tap the Hong Kong IPO market instead a US listing.

Still, debuts by Chinese firms have slumped in Hong Kong and overseas since 2021. IPO proceeds since January are 48% lower than at the same time last year, when they slumped 69% from 2021.

Operating independently since 2018, Jingdong Property’s business now covers 29 Chinese provincial-level regions. It also has 25 overseas infrastructure-related projects and manages industrial parks whose total area exceeds 20 million square meters, according to the company’s website. 

Jingdong Industrials specializes in industrial product supply and related technology and services. In 2022, the company provided services to over 100,000 industrial manufacturing plants in the fields of automobile, mechanical equipment, electronic product assembly and others. It also supported over 16,000 construction projects during the same period.