Yum China applies to add primary listing in Hong Kong
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YUM China Holdings said on Monday (Aug 15) it has applied for a primary listing in Hong Kong, as the company looks to circumvent a risk of delisting from the New York Stock Exchange amid tight regulatory scrutiny on Chinese companies.
The move comes on the heels of an audit dispute between China and the United States, which is threatening to kick out hundreds of Chinese companies listed in New York.
E-commerce giant Alibaba Group Holdings had also said last month it would convert its Hong Kong secondary listing into a dual primary listing.
Five US-listed Chinese state-owned firms, including oil giant Sinopec, last week said they would voluntarily delist from the NYSE, after the Securities and Exchange Commission flagged more than 270 companies, including Yum China, for failing to meet US auditing standards.
Yum China, which runs the KFC and Taco Bell chains in China, said the conversion from its current secondary listing status to primary listing is expected to be completed in October, subject to shareholder approval.
The company will become dual primary listed on the NYSE and the Hong Kong Stock Exchange, it added.
Questions & Answers
Q.What prompted Yum China to apply for a primary listing in Hong Kong?
What prompted Yum China to apply for a primary listing in Hong Kong?
Yum China is seeking to avoid the risk of delisting from the New York Stock Exchange. This follows tight regulatory scrutiny on Chinese companies and an audit dispute between China and the United States.
Q.When is Yum China's conversion to a primary listing in Hong Kong expected to be completed?
When is Yum China's conversion to a primary listing in Hong Kong expected to be completed?
The company expects to complete the conversion from its current secondary listing status to a primary listing in Hong Kong in October. This move is subject to shareholder approval.
Q.Which other companies have recently made similar listing changes?
Which other companies have recently made similar listing changes?
E-commerce giant Alibaba Group Holdings said last month it would convert its Hong Kong secondary listing into a dual primary listing. Also, five US-listed Chinese state-owned firms are voluntarily delisting from the NYSE.
Q.Will Yum China still be listed on the New York Stock Exchange after this change?
Will Yum China still be listed on the New York Stock Exchange after this change?
Yes, Yum China will become dual primary listed. It will maintain its listing on both the New York Stock Exchange and the Hong Kong Stock Exchange after the conversion.
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