PDD Holdings, the parent company of the discount shopping app Temu, has appointed Hong Kong-based Ernst & Young as its auditors for this year’s financial statement review.

Previously, the company worked with Ernst & Young Hua Ming LLP in Beijing.

This change has led to speculation regarding a potential secondary listing in Hong Kong.

Analysts, including Alicia Yap from Citigroup, suggest that this move may indicate preparations for such a listing in the near future.

PDD Holdings has not provided comments on this development.

Unlike competitors such as Alibaba, JD.com, and Baidu, PDD has not yet completed a secondary listing in Hong Kong.

These companies have pursued local listings amid concerns over potential delistings from US exchanges.

Experts note that companies aiming for Hong Kong listings often hire local auditors to comply with regulatory standards.

Felix Wang from Hedgeye Risk Management highlighted that firms like Alibaba and JD.com took similar steps prior to their Hong Kong listings.

A secondary listing could allow investors to convert ADRs to Hong Kong shares if concerns about delisting from US exchanges arise.

Recent PDD Holdings developments