By mid-morning, NetEase had withdrawn a portion of its profits, with the latest turnover of 8% at about $ 133 ($ 17).
The toy company, which has been trading in New York since 2000, has turned to Hong Kong for a secondary offer as oversight of Chinese companies on Wall Street intensifies and tensions in U.S.-China increase.
Not the only one:
E-commerce giant JD.com (J D)
he hopes to raise $ 4 billion in his secondary listing next week.
NetEase began as a Chinese Internet portal in the late 1990s, and expanded to online games in 2001. It is the second largest mobile gaming company in the world, behind Tencent (TCEHY)
, according to analyst firm App Annie. The company says that the most popular games are Identity V, Knives Out and Rules of Survival, among others.
collected $ 2.7 billion in its census in Hong Kong. The company said it wants to use the money to expand its online gaming offerings in overseas markets such as Japan, the United States, Europe and Southeast Asia. It also intends to use some resources to encourage more innovation.
But the company has also made it clear in stock market declarations that it thinks the United States could become hostile to Chinese companies as regulators and lawmakers see new rules that would lead to tighter oversight. Some restrictions might even make it harder to advertise or keep a store in New York.
U.S. Secretary of State Mike Pompeo praised the Nasdaq last week for proposing new compliance rules that could affect Chinese companies, adding that similar stock exchanges should consider similar regulations.
“U.S. investors should not be exposed to hidden and unnecessary risks associated with companies that do not adhere to the same rules as U.S. companies,” Pompeo said in a statement. “Nasdaq’s action should serve as a model for other exchanges in the United States and around the world.”
Meanwhile, the U.S. Senate unanimously passed a bill that will prevent companies that refuse to open their books on listing on Wall Street, following an accounting scandal that involved Luckin coffee (LK)
, which started trading in New York last year. Bipartisan law sponsors said the goal was to “kick fake Chinese companies off U.S. exchanges.” The bill has yet to be passed by the United States House of Representatives before proceeding.
Nasdaq switched to delist Luckin after the Chinese coffee chain admitted that a significant portion of revenue was made last year. Luckin appealed the decision, and its shares continued to trade. Its stocks are 90% lower annually.
NetEase’s successful debut surpassed results Hang Seng index (HSI)
, which fell 1.2% in the morning trade. Markets elsewhere in Asia have also been on a downward trend following the harshest remark by U.S. Federal Reserve Chairman Jerome Powell. Powell said Wednesday that the U.S. economy remains volatile and millions of people will lose their jobs for some time to come.
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