Beike Greenlighted for Hong Kong Dual Primary Listing

The firm is pursuing a listing by way of introduction on the Stock Exchange of Hong Kong, set to take effect on May 11.
May. 06, 2022 10:53
Beike Greenlighted for Hong Kong Dual Primary Listing

(CapitalWatch, May 6, Hong Kong) KE Holdings (NYSE: BEKE), which operates the real estate transactions and services platform Beike, will begin trading its shares in Hong Kong next week under the stock code "2423."

The Beijing-based company has received the green light to list its Class A ordinary shares by way of introduction on the Stock Exchange of Hong Kong's main board. KE said it received in-principle approval from Hong Kong in an announcement on Wednesday evening.

Investment banker Goldman Sachs Asia and the capital market company CICC are acting as joint sponsors for the listing. Pending the bourse's full approval, the company said the shares could commence trading on May 11. The company also announced Thursday that it adopted a 2022 Global Share Incentive Plan. 

As a leading company dealing in both real estate and technology, KE has been caught amid the country's real estate crisis and tech crackdown. 

China's property market has slowed dramatically amid a pandemic-battered economy and developers still reel from liquidity crunches. In the fourth quarter of 2021, KE Holdings reported decreasing transactions and a 21.5% drop in revenue year-over-year. It also reported net losses of $146 million. The number of active agents on the platform has also declined.

KE is in the slew of U.S.-listed Chinese companies pursuing a dual primary listing in Hong Kong. Fellow tech giants Alibaba (NYSE: BABA; HKEX: 9988), JD.com (Nasdaq: JD, HKEX: 9618), and Baidu (Nasdaq: BIDU, HKEX: 9888) earlier paved the way. Now, many are following as market conditions and the regulatory environment both in the U.S. and China remain tense.

A dual primary listing will provide investors with more flexible options of trading sites and time, as well as offer companies a risk-averse solution to the potential delisting from U.S. exchanges.