Lufax Holding Hopes to List in Hong Kong to Attract Global Investors

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Chinese fintech company Lufax Holding has unveiled plans to list on the Hong Kong Stock Exchange (HKSE) in order to tap support from global investors.

On February 1, Lufax Holdings submitted a listing application to the HKSE, applying for dual primary listing on the main board of the Hong Kong Stock Exchange by way of introduction and listing, without the issuance of new shares.

Lufax said that the dual listing will help it to attract investors with different backgrounds, in turn enabling it to expand the company’s investor base and increase the liquidity of shares.

“The directors believe that listing on the Hong Kong Stock Exchange can match Lufax’s business focus in China, which is crucial to the company’s growth and long-term strategic development.”

According to the prospectus, JPMorgan Chase, Morgan Stanley, and UBS will serve as joint sponsors for the listing.

Lufax bills itself as a company that “enhances the competitiveness and reliability of small and micro enterprises by providing them with convenient channels to obtain inclusive products and services, and empowering institutional partners to efficiently reach and serve small and micro enterprise owners.”

According to its prospectus, as of September 30 2022, Lufax had provided its services to a total of about 6.6 million small and micro business owners in China, and its inclusive retail credit balance had reached RMB 636.5 billion.

As of June 30, 2022, the company ranked second out of China’s non-traditional financial service providers for servicing small and micro business owners, as measured by its balance of inclusive small and micro-business loans.