JD Industrials refiles Hong Kong IPO to ride the big wave of China’s stock market revival
The company submitted its second IPO application after a first attempt failed last year due to tepid market conditions
JD Industrials, the largest industrial supply chain technology and service provider by gross merchandise value in China, is seeking to ride the wave in Chinese stock markets that was caused by a stimulus package from Beijing last week. In addition to cuts in borrowing costs, authorities introduced a monetary easing package including 800 billion yuan (US$114 billion) in new funding facilities for stock purchases.
After that, the Hang Seng Index jumped more than 20 per cent from its most recent trough in August, while combined turnover on the Shanghai and Shenzhen exchanges on Monday rose to an all-time high of 2.6 trillion yuan (US$370.6 billion), more than double China’s total foreign direct investment last year.
In the first six months of this year, JD Industrials said revenue rose 19 per cent from a year earlier to 8.6 billion yuan, while adjusted net profit grew 25 per cent to 507 million yuan.
