By mid-morning, NetEase set back some of its gains, and last traded at 8% at around 133 Hong Kong dollars ($ 17).
The gaming company, which has been trading in New York since 2000, switched to Hong Kong for a secondary bid as the scrutiny of Chinese companies on Wall Street intensified and US-China tensions broadened more widely.
He is not the only one:
The e-commerce giant JD.com (Dinar)
She hopes to raise $ 4 billion in the secondary list next week.
NetEase started as a Chinese internet portal in the late 1990s and expanded to online games in 2001. It is the second largest mobile gaming company in the world, behind Tencent (TCEHY)
, According to analytics company App Annie. The company says its most popular games are Identity V, Knives Out, Rules of Survival and more.
It raised $ 2.7 billion in its listing in Hong Kong. The company said it wants to use the funds to expand online gaming offerings in overseas markets such as Japan, the United States, Europe and Southeast Asia. It also plans to use some of the money to fuel more innovation.
But the company has also made clear in stock records that it believes the United States can become more hostile to Chinese companies, as regulators and lawmakers are considering new rules that will lead to stricter scrutiny. Some restrictions can make it more difficult for companies to go public or trade in New York.
Last week, US Secretary of State Mike Pompeo praised the issuance of Nasdaq to suggest new compliance rules that could affect Chinese companies, adding that other exchanges should consider similar regulations.
“American investors should not be exposed to undue hidden risks associated with companies that do not adhere to the same rules that American companies follow,” Pompeo said in a statement. “The Nasdaq business should serve as a model for other exchanges in the United States and around the world.”
Meanwhile, the US Senate unanimously passed a bill barring companies that refuse to open their books from listing on Wall Street, after an accounting scandal involving Lockin coffee (LK)
Who started trading in New York last year. Co-sponsors of the bill said the goal was to “drive out deceptive Chinese companies from American exchanges.” The bill still needs to pass the US House of Representatives before it goes on.
Nasdaq moved to remove Lockin after the Chinese coffee chain admitted that a large part of its revenue last year had been offset. Luckin has appealed the decision and its shares have resumed trading. Its share has fallen 90% this year.
Optimistic debut Netease surpassed Hang Seng Index (HSI)
That fell 1.2% in morning trading. Markets elsewhere in Asia were also heading lower after the gloomy comments from US Federal Reserve Chairman Jerome Powell. Powell said on Wednesday that the US economy remains unstable and millions of people will remain unemployed for some time.