On June 26, NetEase-S rose 3.03% in regular trading, trading at HK$187.2/share, with turnover of HK$370 million. The stock gained on news that the company will officially convert from a secondary listing to a dual primary listing on the Hong Kong Stock Exchange effective June 30.
According to the company announcement, NetEase has elected to end its 12-month transitional grace period ahead of the original deadline of February 27 next year. The HKEX determined that over 55% of the global total trading volume by value of NetEase shares during the last fiscal year was conducted on the Hong Kong market, thus deeming the share trading to have largely and permanently shifted to Hong Kong. The S marker in the stock name will also be removed from June 30.
The dual primary listing status means the company will become eligible for inclusion in a broader range of Stock Connect programs and index selection universes, which is expected to further expand its investor base and enhance liquidity. Multiple brokerages including Everbright Securities and SDIC Securities have maintained buy ratings on the stock, citing strong legacy game performance and upcoming new title launches as growth catalysts.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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