JD Industrials Refiles for Hong Kong IPO, Capitalizing on Resurging Chinese Stock Market

JD Industrials submits a renewed IPO application in Hong Kong, hoping to leverage the surge in Chinese stocks

The firm has made another IPO submission following an unsuccessful first try last year, attributed to lackluster market circumstances.

JD Industrials, China's top service provider and technology supplier to the industrial supply chain sector based on gross merchandise value, is aiming to capitalize on the surge in Chinese stock markets that was triggered by a stimulus package from Beijing recently. Alongside reductions in the cost of borrowing, the authorities rolled out a financial easing package that incorporates 800 billion yuan (equivalent to US$114 billion) in fresh funding facilities for buying stocks.

Following this, the Hang Seng Index experienced a rise of over 20% since its recent low in August. Simultaneously, the collective trade volume on the Shanghai and Shenzhen exchanges on Monday surged to a record-setting 2.6 trillion yuan (US$370.6 billion), which is over twice the amount of China's total foreign direct investment from the previous year.

JD Industrials reported a 19% increase in revenue in the first half of this year, amounting to 8.6 billion yuan compared to the same period last year. Additionally, the adjusted net profit saw a growth of 25%, reaching 507 million yuan.