Alibaba reportedly plans a second listing in Hong Kong

For years, many large Chinese companies have chosen to list in the U.S. instead of or China. Now, amid a trade dispute between Beijing and Washington, one national champion may lead the way back home.

Nearly five years after Alibaba shattered records with a $25 billion IPO, the company is said to be planning a secondary in Hong Kong. Analysts told CNBC that other U.S.-listed Chinese firms may consider doing the same.

“I think there will be more … companies looking to move back to Hong Kong because we really don’t know what the U.S. will be doing,” said Kevin Leung, executive director of investment strategy at Haitong International Securities.

The U.S. and China have been engaged in a trade war that has seen retaliatory moves from both countries. Technology is one of the thorny issues at the center of the dispute. Washington has placed Huawei on a blacklist, while Beijing introduced an “unreliable entities list” — which identifies foreign companies deemed as a risk to Chinese firms.

“From what we see from Huawei and ZTE before, (the) U.S. definitely seems to have issues with China and tech advancement,” he said. ZTE, a major rival to Huawei, was forced to temporarily suspend major operations last year after Washington banned the Chinese telco giant 2018 from buying goods from the U.S. in April.

“I do see more dual listings coming back, especially when you look at the Chinese companies, basically they do have a large chunk of their operations in China,” he added.

Firms that have large market caps, stable earnings and are “household names” or market leaders in China may consider doing so, he said in an email to CNBC.

Leung cited companies such as, CTrip and Baidu which are all listed on the Nasdaq in New York.

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