fredag 5. juni 2020

Chinese companies facing pushback in the US are hedging their bets in Hong Kong

Hong Kong's status as a global business hub has been cast into doubt in recent weeks. But the city has become increasingly attractive to Chinese companies that fear their business prospects in the United States may be in jeopardy. Gaming company NetEase (NTES) announced plans this week to raise billions of dollars through a secondary listing of its shares in Hong Kong, following in the footsteps of Alibaba (BABA) last year. Both Chinese businesses already trade in New York.

NetEase attributed its decision in part to a need for more funding, which it wants to use to expand its business. But it also made clear that it thinks the United States is becoming more hostile for Chinese companies, as regulators and lawmakers consider new rules that would lead to harsher scrutiny. Some restrictions could even make it tougher for companies to go public or keep trading in New York.