PDD Analysts See HK Listing as More Likely After Auditor Change

(Bloomberg) -PDD Holdings Inc.’s transition to a Hong Kong-based auditor may indicate that the Chinese e-commerce company is preparing to apply for a second list there.

In the application made on Wednesday, the main company of the budget shopping application, Temu said that Ernst & Young has touched Hong Kong -based auditors to review the financial statements this year. The company has previously worked with Beijing -based Ernst & Young Hua Ming LLP.

According to Citigroup Analyst Alicia Yap, such a change probably shows that the PDD pursues a list in Hong Kong in the coming months. Uz If this proves that it is true, we believe that it can be seen as a positive catalyst for the share price, ”he said.

PDD did not respond immediately to a request for a comment sent by E -Post except office hours.

The PDD’s American deposit receipts rose to 5.6% within two months. Company, retailers Vipshop Holdings Ltd. and Hong Kong, a group, including a private tutoring Tal Education Group, is among the relatively few Chinese names that have not yet been listed.

Alibaba Group Holding Ltd., JD.com Inc. and Baidu Inc. such companies have provided a second list with concerns that they could be booked from American stock exchanges in Hong Kong. In April, US Treasury Secretary Scott Bessent said that when asked about the potential incations of Chinese companies, all options were on the table.

A second list will potentially enable Chinese companies to transform the ADRs into Hong Kong shares if investors of Chinese companies examine the US. Hong Kong list, as Alibaba did last year – to upgrade to the primary status will allow the motherland buyers to enter the stock.

Hedge Risk Management Analyst Felix Wang said that companies preparing to list in Hong Kong usually interact with local auditors to comply with regulatory requirements. When they call Hong Kong lists, this is the case for both Alibaba and JD.com.

“One of the disappointments in the PDD in the past is that the company is not interested in raising a secondary public offering to expand its investor base,” Wang said. “Does PDD change the list of listing at HK? It can only help with an investor feeling.”

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