NetEase (NASDAQ:NTES), the Chinese gaming company, has confirmed it's pursuing a secondary listing on the Hong Kong Stock Exchange.
In a Securities and Exchange Commission filing, NetEase announced that it has filed a listing application with the Hong Kong Stock exchange. The Nasdaq exchange will remain the company's primary listing venue. NetEase didn't disclose in the filing the amount of capital the Chinese tech stock is aiming to raise or when it will take place. Earlier this month, Reuters reported NetEase was planning on launching the secondary offering on June 11, raising as much as $2 billion.
NetEase's plan to list on the Hong Kong Exchanges comes as tensions between the U.S. and China are intensifying. In May, the U.S. Senate passed the Holding Foreign Companies Accountable Act, or HFCAA, which would force companies outside of the U.S. to meet specific criteria or face a U.S. stock exchange delisting. The House of Representatives hasn't signed off on the bill, yet. While the bill remains pending, President Donald Trump plans to hold a press conference later Friday to address China, though he hasn't provided any details. Depending on what he says, it could have wide ramifications for Chinese tech stocks.