JD Industrials, Unisound AI revive Hong Kong IPOs as Chinese listings accelerate

Third time could be the charm for JD.com’s industrial unit, which may raise up to US$1 billion amid improved sentiment, a source says

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People walk through Exchange Square in Central, home of bourse operator Hong Kong Exchanges and Clearing, on March 28, 2025. Photo: Matthew Miller

Published: 12:46pm, 31 Mar 2025Updated: 4:42pm, 31 Mar 2025

E-commerce giant JD.com’s industrial unit could raise US$500 million to US$1 billion from its third attempt to list in Hong Kong amid improved sentiment in the city’s stock market, according to a source with knowledge of the matter.

JD Industrials and another Chinese firm, Unisound AI Technology, resubmitted their initial public offering (IPO) applications to the Hong Kong stock exchange on Sunday. They did not disclose their fundraising expectations, according to separate filings. It was Unisound’s third application.

The firms’ previous Hong Kong listing plans, in 2023 and 2024, respectively, lapsed due to unfavourable market conditions and valuation mismatches. They are now betting on the city’s revitalised IPO market this year, driven by regulatory support for Chinese firms to list in Hong Kong and optimism in the technology sector following breakthroughs by Chinese artificial intelligence (AI) start-up DeepSeek.

Meanwhile, a near fourfold year on year increase in IPO fundraising to US$2.3 billion in the first quarter pushed the Hong Kong stock exchange to fourth place in the new listings rankings.

The reopening of the pathway for Chinese listings was “important in driving sentiment”, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said during a conference last week. “We’ve got another 100 applications in the pipeline,” he added.

JD Industrials, established in 2017, is China’s largest industrial supply chain technology and service provider by gross merchandise value (GMV).

Its GMV rose to 28.8 billion yuan (US$4 billion) in 2024 from 22.3 billion yuan in 2022, representing a compound annual growth rate of 13.5 per cent. . Its competitor, ZKH Group, which is listed in New York stock exchange, reported a GMV of 10.5 billion yuan in 2024. JD Industrials also turned around its business by logging a net profit of 761.6 million yuan last year from a net loss of 1.3 billion yuan in 2022.