There are around 27 US-traded Chinese firms that could be eligible for a secondary listing in Hong Kong, according to a report by Goldman Sachs, with such listings becoming increasingly likely amid the increasing risk of Chinese firms delisting from the US, reports the South China Morning Post. Many of the companies, including the e-commerce giant Pinduoduo and electric carmaker NIO, with a total market cap of around $250 billion, would likely qualify for secondary listings in Hong Kong, according to a report published by the US investment bank on Monday.
Goldman’s list may shed light on potential candidates for future secondary listings in the city. Sentiment is currently fragile, as the American depositary receipts (ADRs) of Chinese companies and tech firms listed in Hong Kong have plummeted following Didi Global’s decision to delist in the US amid a cybersecurity probe by Beijing.
A Hong Kong listing would give foreign investors in these companies another avenue to cash out, as they will be able to convert their ADRs into Hong Kong shares, as the two will be fully interchangeable.