Author | Arti

The return to Hong Kong and the listing accelerated across the board

On June 2, market news came outPinduoduoIt was decided to go back to Hong Kong for the second listing. The listing team originally planned to hand it in mid-June, but it is not ruled out that it will speed up.

However, the above news was denied by a Pinduoduo spokesperson, adding that the company's cash flow is healthy, so there are no plans for a second listing.

The Unicorn team learned from people close to the trader that Pinduoduo secretly submitted materials related to the listing to the Hong Kong Stock Exchange on June 3. It is expected to pass the hearing at the end of June, and will officially be listed and traded on the Hong Kong Stock Exchange in mid-early July.

Pinduoduo is the “youngest” Chinese securities to return to Hong Kong for the second time. On July 27, 2018, Pinduoduo, which had only been established for 34 months, went public in the US. The underwriting team at the time wasGoldman Sachsand Chinese gold. Today, less than two years after listing, Pinduoduo is the second largest shareholderTencentWith support, the market capitalization has surpassed many traditional Internet giants and developed rapidly around the social e-commerce model.

According to Pinduoduo's financial report for the first quarter of 2020, in the first 12 months ending March 31, 2020, Pinduoduo's annual active buyers reached 628 million, an increase of 42.9 million in a single quarter, continuing the rapid growth trend of users.

Compared with the same period in 2019, Pinduoduo's number of active buyers increased by 185 million. By the end of March, the average annual expenditure of active buyers on the platform reached 1842.4 yuan, an increase of 47% over the same period last year. At the end of 2019, this figure was 1720.1 yuan.

In the first 12 months up to the end of March, Pinduoduo's GMV reached 1157.2 billion yuan, an increase of 108% over the same period in 2019.

The user stickiness of the Pinduoduo platform is steadily increasing. In the latest quarter, the average number of monthly active users of the Pinduoduo App reached 487 million, an increase of 198 million over the same period in 2019.

Huang Zheng, chairman of the board of directors and CEO of Pinduoduo, said, “Monthly active users increased by nearly 200 million a year, and the monthly activity/annual buyer index increased from 65.4% in the first quarter of '19 to 77.6% in the first quarter of '20.” Huang Zheng said that this means that users prefer Pinduoduo's products, and that Pinduoduo also has a stronger ability to meet the diverse needs of users.

Currently, inNetEase,JingdongOn the premise that it is decided to return to Hong Kong for the second listing, Pinduoduo has begun to speed up the listing process. More news broke earlierBaiduSimilar to Ctrip, it plans to be listed on the Hong Kong Stock Exchange for the second time.

Although the rumored internet giants all said they would not comment or deny it, industry insiders generally believe that the second listing of the Internet companies mentioned above did not come out of nowhere.

Last November,AlibabaThis is a good start for the return of China Securities. Many institutions in the market believe that the current return of China Securities is a good opportunity to prosper profits.

The reasons are summarized in three points:

First, China's capital market now has sufficient capital pools to accommodate such a large amount of stocks;

Second, most of these companies lost money when they went public in the US, but now all the conditions affecting the Hong Kong listing have been lifted;

The third point is that such internet companies now exert an important influence in news and public opinion.

In fact, domestic investors are also very familiar with these Internet giants listed in the US. These companies will also seize the opportunity to release value, and at the same time, the market can currently be satisfied in terms of economy, technology, and policy.

According to the Hong Kong Stock Exchange's listing rules, the threshold for returning to Hong Kong for a second listing is not low. First, the market capitalization is not less than HK$40 billion (about US$5.2 billion), or a market capitalization of not less than HK$10 billion (about US$1.3 billion), and revenue of at least HK$1 billion (about US$130 million) for the most recent year.

According to reports in early January this year, Alibaba successfully went public in Hong Kong for a second time, providing a perfect example for other potential Chinese concept stocks to return to Hong Kong stocks. According to reportsHong Kong Stock ExchangeHe said that 40 to 50 Chinese concept stocks listed in the US have been identified as targets to attract them back to Hong Kong.

Currently, there are more than 200 Chinese securities listed in the US. Excluding Alibaba, which has already been listed in Hong Kong, and NetEase and JD, which have decided to go public in Hong Kong, based on the average market value over the past year, the market value of nearly 20 stocks exceeds HK$40 billion, which basically meets the requirements for a second listing in Hong Kong.

The Hong Kong securities industry predicts that the total market value of these nearly 20 Chinese companies is close to HK$3 trillion. If most of them end up being listed in Hong Kong, this will greatly increase the market value of the Hong Kong stock market, which is also of great benefit to the Hong Kong Stock Exchange.

Yesterday, Hong Kong Stock Exchange President Li Xiaojia said: This year is expected to be an important year for Chinese companies' IPOs, as well as for the return of Chinese securities listed in the US.