NetEase converts to dual-primary HK listing on June 30, unlocking Stock Connect

NetEase Inc. will convert its Hong Kong listing to dual-primary status on June 30, after 55% of its global trading volume by dollar value migrated to the city's exchange during the 2025 fiscal year.

"The company has elected to become a dual-primary listed company on the HK Exchange with effect from June 30, 2026," NetEase said in a filing Thursday, adding that the stock marker "S" will be removed from its short name.

The conversion follows a Feb. 27 notice from HKEX that the majority of NetEase's worldwide trading had permanently shifted to Hong Kong. Shareholders at the June 23 annual general meeting approved share issuance and repurchase mandates, amendments to the 2019 share incentive plan and changes to the company's constitutional documents to comply with primary listing rules.

The upgrade from secondary to dual-primary status could make NetEase eligible for inclusion in the Southbound Stock Connect program, potentially unlocking billions of dollars in mainland Chinese capital. The Hangzhou-based gaming and internet company, which maintains its primary Nasdaq listing in New York, had a market capitalization of about $75.7 billion as of Thursday.

The company secured waivers from HKEX to continue using U.S. generally accepted accounting principles for its financial reporting, maintain its variable interest entity structure for China operations and calculate option exercise prices based on its Nasdaq-traded American depositary shares. NetEase will include a reconciliation statement in its interim and annual reports showing the financial effect of material differences between U.S. GAAP and International Financial Reporting Standards.

NetEase's Hong Kong-listed shares trade under the ticker 9999.HK. The stock carries a Hold rating from analysts, with a consensus price target of $132 per ADS, according to TipRanks data. Spark, TipRanks' AI analyst, rates the stock Outperform, citing strong financial performance with high margins and low leverage, though tempered by mixed technicals below longer-term moving averages.

The company also appointed Lai Janette Tin Yun and Li Ching Man as joint company secretaries, effective June 30.

The dual-primary conversion positions NetEase alongside other major Chinese tech firms that have upgraded their Hong Kong listings to attract mainland capital. Investors will watch for potential Stock Connect inclusion announcements in the coming months, which could narrow the valuation gap between its Hong Kong shares and Nasdaq-listed ADRs.

This article is for informational purposes only and does not constitute investment advice.