Tencent Holdings Ltd.-backed Futu Holdings Ltd. will start trading in Hong Kong next week to reach a wider investor base and mitigate risks of delisting in the US.
Futu’s Class A shares are expected to trade from Dec 30, according to a statement Thursday. The financial technology firm, which runs a platform similar to Robinhood Markets Inc., has been listed on the Nasdaq for more than three years.
“Futu Holdings’ proposed dual primary listing in Hong Kong, following in the footsteps of Chinese tech firms, hedges the risk of a forced delisting from the US, gives access to mainland investors once it’s included in the Stock Connect program and enhances its profile with its customer base in its largest market,” Bloomberg Intelligence analyst Sharnie Wong wrote in a report Thursday.
The move to add another location to buy and sell Futu shares is the latest step in the online broker’s strategy to diversify avenues for growth. While the threat of delisting for about 200 companies on New York exchanges appeared to ease earlier this month, regulatory headwinds still exist.
