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NetEase announced plans to convert its secondary listing on the Hong Kong Stock Exchange into a dual primary listing within the next year, following a significant shift in its global trading volume to Hong Kong. This move caused its share price to rise today.
The company’s shares in Hong Kong increased by as much as 3.9 percent, reaching HKD 184.30 (roughly USD 23.60). This growth follows a modest 0.2 percent uptick in its US-listed shares on NASDAQ yesterday, which closed at USD 115.19.
Based in Hangzhou, the firm stated that it had been notified by HKEX that over 55 percent of its total global trading volume by value for fiscal year 2025 occurs on the Hong Kong exchange. This indicates that its shares are considered to have largely and permanently migrated to Hong Kong under local listing regulations.
HKEX will grant a 12-month grace period, after which the company will be automatically classified as having a dual primary listing starting February 27, 2027. At that point, it will be required to fully adhere to the rules applicable to dual primary listed companies, and exemptions linked to its current secondary listing will cease to apply.
The company is evaluating how this transition will impact its operations and will provide monthly updates to HKEX regarding its compliance with dual primary listing standards. It also commits to informing shareholders and potential investors of any major developments in a timely manner.
A key distinction between a dual primary listing and a secondary listing in Hong Kong is the requirement for full compliance with listing procedures. With a dual primary listing, a company’s delisting from one market does not affect its listing status in the other. Additionally, firms with dual primary listings may participate in the Hong Kong Stock Connect program, whereas those with secondary listings currently are not eligible.
Other Chinese companies with dual primary listings in the U.S. and Hong Kong include tech conglomerate Alibaba Group Holding, electric vehicle manufacturers Xpeng and Li Auto, and the video-sharing platform Bilibili.
Founded in 2000, NetEase completed its secondary listing in Hong Kong in 2020. According to its latest annual report, last year’s net profit increased by 14 percent year-over-year to CNY 33.8 billion (about USD 4.8 billion), while revenue grew 7 percent to CNY 112.6 billion (approximately USD 16.1 billion).
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