Chinese e-commerce retailer JD.com is planning to spin off its health unit and list it on the Hong Kong stock exchange, the New York-listed company said on Monday, a move that follows escalating Sino-U.S. political tensions.
Several Chinese companies are putting off plans for U.S. listings amid mounting tensions between the world’s top two economies, while those listed in New York are seeking to return to exchanges closer to home.
JD.com, which is listed on the Nasdaq in New York, raised about $3.87 billion in its Hong Kong secondary listing earlier this year.
Its U.S.-listed shares fell nearly 2% in premarket trading following Monday’s announcement.
JD.com said the timing of divestiture and unit listing will depend on market conditions, and there is no assurance as to whether the process will be completed.
Hong Kong Exchanges and Clearing Ltd said last month a trend of secondary listings by New York-listed Chinese companies would bolster its prospects.
E-commerce giant Alibaba completed its secondary listing in Hong Kong last year. Other companies including travel firm Ctrip and Baidu were considering Hong Kong listings, Reuters reported earlier this year.