PDD Analysts See HK Listing as More Likely After Auditor Change
The parent company of budget shopping app Temu said in a filing on Wednesday that it has tapped Hong Kong-based auditors of Ernst & Young for a review of its financial statements this year. The firm previously worked with Beijing-based Ernst & Young Hua Ming LLP.
Such a shift likely suggests that PDD is pursuing a listing in Hong Kong over coming months, according to Citigroup analyst Alicia Yap. 'If this proves to be true, we believe this could be viewed as a positive catalyst for the share price,' she said.
PDD did not immediately reply to an emailed request for comment outside of office hours.
PDD's American depositary receipts rose as much as 5.6% to the highest in two months. The firm is among the relatively few US-listed Chinese names that have yet to list in Hong Kong, a group that also includes retailer Vipshop Holdings Ltd. and tutoring firm TAL Education Group.
Companies like Alibaba Group Holding Ltd., JD.com Inc. and Baidu Inc. have already secured a second listing in Hong Kong amid persistent concerns that they could get booted off American exchanges. In April, US Treasury Secretary Scott Bessent said all options are 'on the table' when asked about potential delistings of Chinese companies.
A second listing would potentially enable investors of Chinese firms to convert ADRs to Hong Kong shares in the event of a US delisting. Upgrading the Hong Kong listing to a primary status — like what Alibaba did last year — will also allow mainland buyers to tap into the stock.
Felix Wang, an analyst at Hedgeye Risk Management, noted that companies preparing to list in Hong Kong often engage with local auditors to comply with regulatory requirements. That was the case for both Alibaba and JD.com when they sought Hong Kong listings, he said.
'One of the frustrations on PDD in the past is the company not interested in issuing a secondary IPO' to expand its investor base, Wang said in a note. 'Is PDD changing its mind on listing in HK? It can only help with investor sentiment.'
More stories like this are available on bloomberg.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
10 minutes ago
- Time of India
‘Probably will know in an hour…': Donald Trump and EU chief begin trade deal talks in Scotland; seen as make-or-break
Donald Trump trade deals (AI image) US-EU trade deal: US President Donald Trump has begun trade deal talks with European Union chief Ursula von der Leyen in Scotland. Ahead of the talks, Trump spoke of the likelihood of a trade deal saying, '. .probably will know in an hour.' Trump and Ursula von der Leyen are looking to resolve a prolonged transatlantic trade dispute as the deadline approaches. Earlier Trump indicated a 50 percent probability of reaching an agreement with the European Union, which faces a reciprocal tariff of 30% unless a trade agreement is secured by August 1, with US officials confirming on Sunday that "no extensions" would be granted. Von der Leyen's European Commission, representing EU member states, is actively pursuing an agreement to protect trade relations valued at $1.9 trillion annually in goods and services. An EU diplomatic source told AFP that a framework for agreement emerged following late-night discussions on Saturday, several crucial matters remained unresolved. The ultimate decision remains with Trump. A diplomatic source was quoted as saying that while a political agreement exists, it awaits Trump's approval, who is maintaining negotiations until the final moment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo The suggested arrangement includes a standard 15% tariff on European Union exports to the US, matching Japan's agreement, with exemptions for crucial industries such as aircraft and spirits, excluding wine. EU member states must ratify any agreement. Their ambassadors, whilst in Greenland, received updates from the commission and planned subsequent meetings following potential agreement confirmation. The EU representative indicated that the 27 nations broadly supported the proposed arrangement, whilst maintaining their established negotiating positions. The summit between Trump and von der Leyen is taking place at Turnberry along Scotland's southwestern shoreline, at the president's golf establishment, where he spent considerable time playing over the weekend. Trump, aged 79, expressed on Friday his aspiration to achieve a significant agreement with the EU. "I think we have a good 50-50 chance," the president stated, noting approximately 20 unresolved matters. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
18 minutes ago
- Time of India
Trump says US very close to a deal with China, 50-50 chance of having a deal with EU
US President Donald Trump today said that the United States is very close to a deal with China. During a press briefing with European Commission President Ursula von der Leyen , Trump also said that there is a 50-50 chance of having a US-EU trade deal but he said that the main sticking point is the fairness.
Mint
33 minutes ago
- Mint
Zolostays' first investor Nexus Venture to check out after a decade
MUMBAI : Ten years after placing its early bet on Zolostays, Nexus Venture Partners is preparing to exit the co-living firm, according to three people in the know. The startup, now valued at about ₹1,500–1,600 crore, has trimmed its non-core operations and is courting new investors, as it looks to scale in the competitive premium co-living space. 'Nexus has initiated talks with several VC (venture capital) funds and some strategics. It is looking to sell its entire 27% stake," one of the persons cited above said. The Bengaluru-based startup, which has raised about $113 million so far from a clutch of investors through debt and equity, has been struggling to grow beyond its core markets. The company had recently sold its student housing business that manages accommodation for colleges and universities to Good Host Spaces for $12.5 million. Zolostays said this sale was a part of the strategy to focus on its core business of managing co-living spaces. At that time, the company had said that the proceeds from the sale will allow it to concentrate on its main business activities, improve cash flow, strengthen overall financial health, and bring higher operational efficiencies. As per data available with Tracxn, Zolostays' fundraising includes a $56 million Series C round led by Investcorp and Mirae Asset. The company had also raised about $30 million in 2019 from investors led by IDFC Alternatives, Mirae Asset and Nexus Venture. Nexus VP has been one of Zolostays' biggest backers, having invested in the company since 2015. 'Nexus has stayed its course in the company and is now looking to sell," said the second person familiar with the development. When contacted, a Zolostays spokesperson denied there was any deal imminent. A Nexus Venture spokesperson did not respond to emailed queries. Founded in 2015 by Nikhil Sikri, Akhil Sikri and Sneha Choudhry, Zolostays had started out with a $1 million funding from Nexus Venture. Akhil Sikri left the company in 2023, and is now the chief technology officer at Apsona, a SaaS firm. A third person in the know pegged the company's valuation at ₹1,500-1,600 crore. Zolostays provides premium co-living spaces to students, professionals and organizations, and it operates in more than 10 cities. As per Entrackr, Zolostays recorded an 11.4% year-on-year (y-o-y) growth in revenue to ₹204.4 crore during FY24, while its losses narrowed by 17.4% to ₹57 crore. The company is yet to detail its financials for the last fiscal. According to a Nasscom blog published in May, the demand for co-living spaces and stock for 2025 are estimated at 6.6 million and 0.3 million beds, respectively. Penetration for the sector is likely to improve from 5% in 2025 to over 10% by 2030, it said. 'India's co-living market is on an upward growth trajectory, with demand rebounding strongly in recent years and operators gearing up for expansion across Tier-I cities and select Tier-II cities," the blog said. "The resurgence of the sector is being fueled by rapid urbanization and migration to cities, especially amongst students and young professionals who continue to seek flexible, relatively affordable, community-driven, and hassle-free housing options," it said.
