As of 20/06/2020
JD.com has a thunderous entry to the Hong Kong stock exchange. The retail giant has entered the Hong Kong stock exchange amid raised concerns due to the ongoing US-China tension. It however was greeted with an IPO of $ 3.87 Billion, the second biggest this year. (Beijing-Shanghai High Speed Railway is at the top spot.) Not only that, it’s shares spiked by 5.75% as well. Talk about a dream start!
JD.com carefully planned it with its annual sale online: 618, as it is called because of its date of June the 18th. JD.com along with Alibaba handled a business of $ 136.51 Billion, reported CNBC. Alibaba already made its Hong Kong entry in November last year with a $ 13 Billion IPO. China’s largest gaming company NetEase also made it’s Hong Kong debut as it raised $ 2.7 Billion last week, read a BBC report. It was only a matter of time that rival JD.com followed suit.
The step came as US-China relations strained. The tension was already boiling which the pandemic only worsened. China itself has been going through internal political turmoil. With situation unclear about Hong Kong’s future, the dreams of Globalization appear muddy. With US seeking retribution from China, the trade relations do not appear to be becoming better. Thus, the US enlisted Chinese company’s are coming back home. This will also help them focus on the Mainland China and establish strong bonds with the native people.