Chinese e-commerce firm PDD Holdings' switch to a Hong Kong-based auditor may signal preparations for a secondary listing in the city, Bloomberg reported, citing two analysts.
The discount e-commerce player said in a filing on Wednesday that it has engaged Hong Kong-based Ernst & Young to audit its financial statements for the current year, replacing its previous auditor, Ernst & Young Hua Ming LLP in Beijing.
Bloomberg cited Citigroup analyst Alicia Yap who said that if Pinduoduo is indeed preparing for a Hong Kong listing in the coming months, it would likely act as a positive catalyst for the stock.
Felix Wang, managing director at Hedgeye, noted that companies planning Hong Kong listings typically engage local audit firms to comply with regulatory requirements. He added that Alibaba (9988) and JD.com (9618) took similar steps when pursuing their Hong Kong listings.
STAFF REPORTER
