Beijing (PingWest)—Three Chinese technology companies -- Tencent Music, online retailer Vipshop and livestreaming platform Joyy -- are seeking secondary listings in Hong Kong, Nikkei Asia reported.
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.
Rising geopolitical tensions between the US and China have threatened to spill over to Chinese firms listed on Wall Street. 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.
Tencent Music is looking to raise up to $3.5 billion but without a listing timetable, while Vipshop and Joyy are aiming to raise $2.5 billion and just under $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.
Joyy was shorted by Muddy Waters in November for being accused of fraud. "We conclude that YY's component businesses are a fraction of the size it reports, and that the company's reported user metrics, revenues, and cash balances are predominantly fraudulent," Muddy Waters said in a report on its website.
The short-seller also said its year-long investigation shows YY Live is an “ecosystem of mirages” and “about 90% fraudulent”.
The report puts the Chinese search engine giant Baidu’s plan to acquire Joyy’s domestic business YY Live on hold.