Chinese online question-and-answer platform Zhihu is preparing for an initial public offering - and it may be in Hong Kong.
Zhihu has Goldman Sachs, Morgan Stanley and Credit Suisse as IPO underwriters, and reports in the mainland are that the listing could be in Hong Kong or the United States.
Zhihu raised US$434 million (HK$3.37 billion) from search giant Baidu and Kuaishou Technology, a Chinese online short video start-up last August. And existing backers Tencent (0700) and Capital Today invested then.
Founded by coder-turned-blogger Zhou Yuan, Zhihu has over the past eight years become one of China's most reputable social media platforms.
It has a reputation for delivering high-quality Q&As on topics from films to football and foreign policy.
Meanwhile, Haier Smart Home (6690), the major unit of mainland household appliances giant Haier, rose 5.6 percent to HK$25.3 on its Hong Kong trading debut yesterday with a market turnover of HK$1.86 billion.
The Hong Kong listing is part of Haier Group's restructuring plan. That saw Haier Smart Home shares listed by way of introduction in taking Haier Electronics private.
Haier Electronics has become a wholly-owned subsidiary of Haier Smart Home. Haier Group remains controlling shareholder of Haier Smart Home.
Haier Smart Home, which has gone public in Shanghai and Germany, mainly produces refrigerators, air conditioners and other household appliances overseas.
Listed in 1997 in Hong Kong, Haier Electronics mainly produces and sells water heaters. It also distributes products from Haier Smart Home and Haier Group.
Haier Smart Home was included in Stock Connect and operates in more than 160 countries.
It has home appliance brands including Haier, Casarte, Leader, GE Appliances, Candy, Fisher & Paykel and Aqua.
For the first nine months of this year, Haier Smart Home generated about 47 percent of its revenue from the mainland.
But in that period its net profit dropped by 17.2 percent to 6.3 billion yuan (HK$7.47 billion) due to declining retail volumes for major home appliances amid the Covid-19 pandemic.
In other action, Smartphone equipment supplier AAC Technologies (2018) said last night it is considering to spin off its optics business to list in the mainland.
AAC Optics is a non-wholly-owned subsidiary of AAC Technologies and is involved mainly in the research and development, production and sale of optical products.
Chinese Q&A platform Zhihu prepares for its IPO. Above: founder and CEO Zhou Yuan. XINHUA
