Bankers are pitching “homecoming” offerings to dozens of Chinese companies listed on Wall Street, as tensions between Beijing and Washington threaten the future of shares worth an estimated $1tn.
Several big companies have already launched offerings in Hong Kong, as the Trump administration increases pressure on Chinese businesses trading on US markets. The latest was JD.com, the ecommerce group that this week completed a successful secondary share sale. The sale ranked as the world’s second biggest offering of the year, at nearly $4bn.
The moves come after the US Senate passed a bill last month that could force Chinese companies to withdraw from American exchanges if they do not comply with US accounting standards. Bankers and lawyers say that plenty more US-listed Chinese companies could follow JD.com, meaning that Hong Kong — widely viewed as a victim of frictions between the Washington and Beijing — could profit handsomely.