What happened: Ping An Insurance’s fintech unit OneConnect is leaning towards New York as the destination for its initial public offering (IPO), which could take place as early as in September. The fintech company is pondering a listing in the US in the hope to achieve a higher valuation, according to sources cited by Reuters.
Why it’s important: OneConnect had been planning its Hong Kong listing since the beginning of the year. It could raise up to $1 billion and achieve a valuation of $8 billion. Hong Kong has become an attractive destination for Chinese tech company IPOs, thanks in part to the stock exchange’s listing reforms last year. However, many of the board’s new listings have posted weak performances. China and US trade tensions likely made New York a more attractive location for companies as its markets are considered more mature and predictable. Moreover, the ongoing protests in Hong Kong will likely contribute to ongoing market jitters.