US-listed Tencent Music, Vipshop, Joyy plan secondary listings in Hong Kong

Tencent Music is looking to raise up to US$3.5 billion but without a listing timetable, while Vipshop and Joyy are aiming to raise US$2.5 billion and just under US$1.25 billion respectively. The two firms could start the offering in the second or third quarter of this year, according to four people familiar with the matter.

The three tech majors are following Chinese search engine Baidu, online video platform Bilibili, and online automobile seller Autohome in chasing secondary listings in Hong Kong.

The move would allow the Chinese firms to expand their investor base as they face possible delistings in the US amid new regulations in the western country.

In December last year, the US House of Representatives passed a bill that could lead to Chinese firms getting delisted from the US stock market if they don’t allow US inspectors to review their auditors’ work for three consecutive years.

As of October last year, 217 Chinese companies were trading on American exchanges with US$2.2 billion in total market capitalization, according to the report.