Qin Jianlin looked around and whispered: "Mr. Zhou, actually, I have a rumor here. The Hong Kong government is preparing to lift the restrictions on AB shares, and it should be implemented this year."

"Oh, this year?" Zhou Yujie's eyebrows moved. In fact, he knew that the Hong Kong government would lift the restrictions on A-shares, but the implementation time should be at the end of next year.

Either Qin Jianlin's source of information is wrong, or the Hong Kong government's decision-making is too slow to execute, and the last possibility is that Pinduoduo comes to Hong Kong in advance, causing the butterfly effect.

Internet giants basically start from scratch, or the initial family has a certain economic foundation and connections, but with the development of startup business in a short period of time, it is inevitable to introduce capital from other parties, and it will also be round after round of financing, which naturally leads to a significant reduction in equity in the hands of the founders or founding teams.

If the A-shares are not used, these Internet giants that are deeply involved in the domestic market may have changed hands long ago. This has led to Internet companies not choosing to list in Hong Kong.

The most fundamental reason why Pinduoduo went public when it did not accept A-shares in Hong Kong was that because of its rapid development, Pinduoduo only raised three financings in total. So far, Zhou Yujie still holds 60%+ of Pinduoduo stocks.

Even after Pinduoduo goes public, the diluted equity will exceed 50%, and Pinduoduo's control is still very stable.

But other subsidiaries are not good. Some have a lot of financing and cannot be listed in Hong Kong, and some have not raised funds, which does not meet the requirements for shareholders and financing before listing in Hong Kong.

Qin Jianlin laughed and said, "Yes, in fact, this is also a concession from the Hong Kong government."

Zhou Yujie nodded and said, "Okay, if this is the case, then Toutiao will use Hong Kong as the best place to list."

...

On April 16, the Hong Kong Securities Regulatory Commission officially approved the listing approval document of Pinduoduo, marking that Pinduoduo has completed the last procedure for listing in Hong Kong.

The only underwriter responsible for Pinduoduo's listing this time was Bank of China. According to the Hong Kong government's opinion, Pinduoduo's listing scale was large enough that at least two underwriters should have distributed it together. I thought it was known that the Hong Kong government was recommending HSBC, but this was naturally rejected by Zhou Yujie. It is not the 1980s. Although HSBC has influence, China Bank is backed by the motherland, so it doesn't have to be a waste of him.

The listed Pinduoduo still adopts the most traditional vie structure, that is, register a company overseas and then put all the net profits of Pinduoduo's company into it, while Pinduoduo's main equity is still in China.

This is because Chinese laws explicitly stipulate that domestic Internet companies have regulatory restrictions on "foreign investment ban", which restricts domestic companies from listing in the United States. However, there are policies and countermeasures at the top. Sina invented the vie structure, and the Chinese government has also adopted a default attitude towards this.

When everything is ready, it is naturally necessary to promote it on a large scale to let more people know that Pinduoduo is about to go public in order to attract more funds.

If it is listed in the United States, various roadshows may have begun. Professional teams will go to the stock markets in cities such as New York, Los Angeles, and San Francisco to promote it, but Hong Kong is another matter. Such a small city can be completed in a few days.

The real big head of this publicity is in China. Although there are many restrictions on Chinese people purchasing Hong Kong stocks and ordinary people do not have direct channels to buy them, it is another matter for rich people. In order to make Pinduoduo's listing more successful, Bank of China has also launched this business in its own domestic branches. Domestic customers can buy Pinduoduo's virtual stocks in RMB, while Bank of China will use the same funds to purchase Pinduoduo's stocks in the future. When the delivery time is reached, it will be exchanged into equivalent RMB and returned to customers.

The reason why it is so cumbersome is that the current control of foreign exchange in China is very strict, otherwise it would be much more convenient to directly exchange foreign exchange.

In other unknown fields, many people have shown their magical powers and purchased enough foreign exchange, preparing to make a big profit while Pinduoduo is listed.

However, domestic listing is not popular for roadshows. With Toutiao's promotion ability, online promotion has become the top priority. Today, Toutiao has begun to promote the listing of Pinduoduo on a large scale, and Quxin has also begun to push news about this.

On May 5, 2017, Pinduoduo officially landed on the Hong Kong Stock Exchange with an issue price of HK$25, which was the result of consultations between multiple parties.

If the issuance price of a listed company is set too low, the company's listing financing results will be reduced, losing the significance of listing. If it is set too high, it will cause a decrease in the number of willing buyers and will also affect financing.

However, Pinduoduo is very popular. If too many people are optimistic about it, the issuance price will be higher, which is more conducive to financing.

There is no limit up or limit down. With the active capital of all parties, Pinduoduo's stock price has risen to HK$42, with a daily increase of 68%, with a total market value exceeding HK$200 billion, and a financing amount of HK$18.5 billion. It has become one of the top 20 companies in Hong Kong. It is only a matter of time before it becomes a blue-chip stock in Hong Kong.

Driven by Hong Kong, mainland and overseas capital, real estate and monopoly state-owned enterprises have become weaker. The Hong Kong stock market has also revamped the perception of Internet companies about listing with this wave of popularity. It turns out that in addition to Nasdaq, Hong Kong can also become a holy place for financing.

On the second day after Pinduoduo went public, the Hong Kong Stock Exchange issued an announcement announcing that it was considering lifting restrictions on the ab equity structure. As soon as the news came out, it caused a sensation. Anyone with a discerning eye could see that Hong Kong obviously wanted to compete for many second-generation Internet giants from the Nasdaq that have not yet been listed in the mainland market.

However, this is a future event and has nothing to do with Zhou Yujie. This time, the listing of Pinduoduo also made Zhou Yujie's value appear in the capital market for the first time.

Before listing, Pinduoduo raised three financings. At that time, Zhou Yujie held a total of 63.6% of Pinduoduo's shares. After this listing financing, Zhou Yujie still held 50.88% of the equity. According to the closing price on the day of listing, Pinduoduo's shares were worth as high as HK$110 billion, equivalent to approximately US$14 billion.

The characteristic of an Internet company is that it is largely common prosperity. Pinduoduo's core employees have a certain number of original shares. Pinduoduo's success can be said to be the accumulation of core resources in Toutiao. In addition, Zhou Yujie also wants to inspire the company's senior management in advance, that is, to provide certain equity rewards to core employees. For employees who hold their own stocks, they can also convert their stocks into Pinduoduo's stocks at a certain price. In this way, many employees can cash out their stocks as soon as possible to increase their quality of life or other aspects of use.

So, a large number of billionaires, millions of workers were born, among which Lin Youde, Zhong Guangwei and Zhu Wenbin immediately gained a net worth of hundreds of millions with their holdings of Pinduoduo stocks, and more than a hundred people in the tens of millions were. Of course, this is also a digital fund. If you want to completely exchange it into cash, you have to wait until the hedge required by the Hong Kong Stock Exchange.

...
Chapter completed!