Shares in technology group NetEase surged on their Hong Kong debut following a $2.7 billion secondary offering, as tensions between Washington and Beijing prompt more Chinese companies to raise cash in the city, reported the Financial Times.
In early trading on Thursday the company’s stock jumped by as much as 10% as China’s biggest maker of online video games found strong investor demand. The shares closed 6% higher.
Hong Kong’s stock exchange is expected to benefit due to a flare-up in US-China frictions. Several big companies from the world’s second-largest economy have lined up so-called “homecoming” listings in the city as the Trump administration increases pressure on Chinese companies that trade in US markets.
Investment bank China Renaissance estimated on Thursday that more than $1 trillion worth of Chinese listings on Wall Street could be affected by proposed US legislation that would forcibly delist companies that fail to comply with US accounting standards.