JD Logistics Shares Deliver In Hong Kong Debut

image copyrightGetty Images

Shares in the logistics arm of Chinese online retail giant JD.Com rose on their Hong Kong market debut.

JD Logistics raised $3.2bn (£2.3bn) in the Asian financial centre's second-largest initial public offering (IPO) this year.

The company has a huge delivery network across mainland China and is known for its army of red-jacketed workers.

JD.com opened up the warehousing and delivery services of its logistics business to third-party firms in 2017.

JD Logistics shares opened more than 14% higher before ending the day with a gain of 3.3%.

Some investors had voiced caution due to Beijing's recent crackdown on some of China's biggest e-commerce firms.

Investor confidence was dealt a blow last year when Ant Group, the financial affiliate of technology giant Alibaba, was was forced to suspend its record $35bn planned market debut after coming under intense scrutiny from the Chinese government.

media captionHow a little Ant became a financial giant

Speaking in Beijing on Friday to mark the listing, JD Logistics chief executive Yu Rui said the scrutiny by regulators would bring it more opportunities as it was differentiating itself by spending on technology.

"We are going to use the funds raised from the IPO to further improve our networks, including in the lower-tier and suburban areas in China, and the infrastructure of the overseas markets," he said.

In the past year and half Hong Kong has seen a flurry of stock market listings by Chinese technology companies. Last year alone the city saw a total of $49bn raised by IPOs.

It comes as firms choose to sell their shares closer to home as tensions between Beijing and Washington remain high.

In June, JD Logistics' parent company JD.com raised $4bn on the Hong Kong Stock Exchange, while its heath business JD Health raised $3.5bn at the end of the year.

But there had been also concerns about Hong Kong's IPO market after a series of tepid performances by new companies, as the city has been rocked by years of protests and political tensions.

RECENT NEWS

The Meteoric Rise Of Anthropic: Valuation And The Future Of AI

In an era where artificial intelligence (AI) is not just a buzzword but a cornerstone of technological advancement, Amaz... Read more

The Future Of Sports Strategy: Navigating The AI Revolution

In the fast-evolving world of competitive sports, the introduction of Artificial Intelligence (AI) has been nothing shor... Read more

The Future Of Sports Strategy: Navigating The AI Revolution

In the fast-evolving world of competitive sports, the introduction of Artificial Intelligence (AI) has been nothing shor... Read more

Beyond The Hype: The Harmonious Fusion Of AI And Music Genres

In the evolving symphony of the music industry, artificial intelligence (AI) is no longer just a futuristic concept but ... Read more

Collaboration Or Competition? Big Tech And Public Archives

In the rapidly evolving digital landscape, the intersection of public broadcasting archives and Big Tech's AI ambitions ... Read more

The Fallout Of Antitrust Actions: Apple's Stock Dips And Investor Sentiment Shaken

In a landmark move, the Biden administration has taken a significant step in tightening the reins on Big Tech’s market... Read more