Trip.com up more than 4% in Hong Kong IPO; top executive expects 'record number' of China travelers

3 weeks ago 14

Online question bureau Trip.com made a beardown debut successful Hong Kong connected Monday, with shares rising much than 4% from their contented terms successful day trade.

The China-based institution present joins different U.S.-listed Chinese tech heavyweights specified arsenic Alibaba, JD.com and Baidu that person returned person to location via secondary offerings successful Hong Kong. It priced its archetypal nationalist offering at 268 Hong Kong dollars per share, and raised 8,478 cardinal Hong Kong dollars ($1.09 billion) assuming the implicit allotment enactment is not exercised.

The secondary listing comes arsenic Chinese tech companies proceed to look the menace of being delisted successful the U.S., clouding capitalist sentiment.

This May vacation we already person … immoderate of the number(s) coming successful and we're looking astatine grounds fig of travelers successful China — astir apt adjacent treble digit maturation from the pre-Covid levels.

James Liang

executive chairman, Trip.com Group

James Liang, enforcement president of Trip.com Group, told CNBC the "main reason" for the company's secondary listing successful Hong Kong was to marque it much convenient for planetary investors successful Asia and China to commercialized its stock.

"Most of our customers are successful Asia, I deliberation it's really beauteous earthy for america to (be) listed successful Hong Kong," helium said Monday successful an interrogation with CNBC's "Street Signs Asia."

'Very optimistic' astir May holidays

Even arsenic overmuch of the planetary question marketplace continues to falter owed to the coronavirus pandemic, Trip.com expects a "record fig of travelers successful China" during the upcoming agelong vacation successful May.

"This May vacation we already person … immoderate of the number(s) coming successful and we're looking astatine grounds fig of travelers successful China — astir apt adjacent treble digit maturation from the pre-Covid levels," according to Liang. The Labor Day holidays tally from May 1 to 5 successful China.

In particular, higher extremity accommodation specified arsenic resorts and abbreviated region question are expected to spot "very, precise accelerated growth" that could really much than offset the diminution successful planetary travel, Liang projected.

An worker walks done the reception country astatine the Trip.com Group Ltd. office successful Shanghai, China, connected Thursday, Feb. 4, 2021.

Qilai Shen | Bloomberg via Getty Images

"The wealth that radical prevention from buying the planetary aerial ticket, radical walk connected hotels particularly high-end hotels and cars, you know, section transportation," helium said. "Even though the full transaction magnitude whitethorn not beryllium reaching a grounds level, but past successful presumption of fig of travelers and successful presumption of the margins, we're precise optimistic."

China was the archetypal state to study astir the coronavirus pandemic. Following strict lockdown measures that were instituted crossed the state weeks aft the earliest Covid-19 cases emerged successful Wuhan metropolis precocious 2019, the state mostly managed to incorporate the virus' dispersed and emerged successful 2020 arsenic 1 of the fewer large economies that expanded that year.

By contrast, authorities successful different countries proceed to wrestle with inoculating their populations successful the look of expanding microorganism infections and imaginable mutations.

One illustration is India which has experienced a 2nd question of coronavirus infections since February that last week overtook Brazil to go the 2nd worst- affected state successful presumption of cases, down lone the U.S.