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US-Listed Property Platform KE Makes Hong Kong Debut

Shares in KE Holdings, which operates the online property platform Beike, opened at HK$30 each


China property stocks have soared on news of a comprehensive plan by the central bank and banking officials to boost liquidity to the troubled real estate sector.
The National Association of Financial Market Institutional Investors said it would widen a programme to support about 250 billion yuan worth of debt sales by private firms, including developers. Reuters file photo.

 

US-listed China property firm KE Holdings made its debut on the Hong Kong Stock Exchange on Wednesday in a so-called “homecoming listing“.

It is the second New York-listed firm after electric vehicle maker Nio Inc to list by introduction.

Shares in KE, which operates the online property platform Beike, opened at HK$30 ($3.82) each. Beike matches buyers and sellers of real estate.

Listing by introduction is a format in which a company does not issue new shares or raise fresh capital, unlike a traditional initial public offering.

 

ALSO SEE: US Regulators Seen in China For Talks on Delisting Dispute

 

 

Added to SEC List

The company’s decision to list in Hong Kong, which is a dual primary listing, came after KE was added on April 22 by US authorities to a list of companies that could be delisted if they did not allow US auditors to access their accounts.

KE said at the time it was exploring possible solutions to protect the interest of its stakeholders and would continue to comply with laws in the US and China.

The company’s US-listed stock has fallen 41% so far in 2022, battered by concerns over China’s property shake-out and fears it could be delisted in the United States.

The US-listed stock was issued at $20 per share in August 2020 and closed Tuesday at $11.83.

US regulators arrived in Beijing last Friday in a bid to settle the long dispute over the auditing of Chinese companies listed on US stock exchanges, people familiar with the matter said.

If the auditing dispute is not resolved, some 248 Chinese firms with stock worth more than $1 trillion could be kicked off exchanges in New York.

 

  • Reuters with additional editing by Sean OMeara

 

 

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China’s KE Holdings Plans ‘Homecoming’ Listing in Hong Kong

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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