China ADRs Secondary Listing Deep-Dive: Yin and Yang

Ever since Alibaba successfully completed its secondary listing in Hong Kong in Nov 2019, markets have been abuzz with news of other companies that are planning to follow in Baba’s footsteps.

However, not all US listed China ADRs are eligible for undertaking a secondary listing and not all are likely to make as big a splash.

In this insight, we’ll aim to shortlist the ones that are most likely to undertake a secondary listing by highlighting:

1. The recent factors that have been creating a pull effect, as well as the factors creating a push effect in the US

2. The additional incentives provided for a Hong Kong listing via the South-connect trading

3. Eligibility as per HKSE rules for a secondary listing

4. Short-list of ADRs that meet the requirements and a ranking based on our quantitative criteria

5. A look at how Alibaba and Beigene traded and lessons from the same