ByteDance reportedly mulls listing China biz in Hong Kong or Shanghai

Chinese tech giant ByteDance, which operates popular short-video app TikTok, is considering listing its China business in Hong Kong or Shanghai, Reuters reported, citing people familiar with the matter.

Photo credit: ByteDance

According to sources, the company prefers to list in Hong Kong and has been in talks with Hong Kong Exchanges and Clearing as well as Chinese securities regulators.

It also plans to list its non-China business, which includes TikTok, in Europe or the US, the sources said, adding that ByteDance had originally wanted to list as a combined entity in New York or Hong Kong.

Discussions are still at an early stage, the sources noted.

Tech in Asia has reached out to ByteDance to learn more about its IPO plans, but a spokesperson for the company declined to comment on “market rumors.”

The report comes as US-listed Chinese companies face tighter regulations following the Luckin Coffee fiasco. Chinese online travel major Ctrip and top search engine Baidu are said to be considering delisting from Nasdaq amid rising US-China tension.

ByteDance was reported to have recorded a net profit of more than US$3 billion last year, driven by a significant growth in user traffic that lured advertisers from Tencent and Baidu. It also generated US$5.6 billion in revenue in the first quarter and has set a revenue target of about US$28.6 billion for this year.

The Beijing-based company was recently valued at up to US$140 billion earlier this year, according to Reuters. The sources said a standalone listing in Hong Kong or Shanghai may value its China business at more than US$100 billion.