Lufx files for a US IPO on the New York Stock Exchange


A logo of the Lufax website Lu.com is seen at the company’s headquarters on May 28, 2020 in Shanghai, China.

Wu Jun | Visual china group | Getty Images

Guangzhou, China – Lufax, one of China’s largest wealth management platforms, has filed to go public in the US, amid a flurry of capital market activity by Chinese companies.

The Shanghai-headquartered firm, backed by financial giant Ping An Group, plans to list on the New York Stock Exchange under the ticker “LU”, according to a filing with the Securities and Exchange Commission.

Lufax has not yet priced its shares or said how much it will offer during the listing.

Chinese technology companies are seeking to take advantage of a rebound in stock markets to move into public markets, including Wall Street, despite geopolitical tensions between the US and China.

Electric carmakers Xpeng Motors and Li Auto both went public in the US earlier this year.

Ant Group, a financial technology giant controlled by Alibaba founder Jack Ma, is gearing up for a concurrent initial public offering (IPO) on the Hong Kong Stock Exchange and the Shanghai Stock Exchange’s Star Bazaar, a Nasdaq-style tech board .

Lufx’s New York listing poses a threat to US listed Chinese firms due to rising tensions between the US and China. Lawmakers in Washington are pushing for more and more scrutiny of Chinese companies through proposed laws that threaten to delist some firms in the US

There may be a factor behind why some US listed Chinese companies, including Alibaba and NetEase, have secondary listings in Hong Kong.

In its SEC filing, Lufax warned that “a severe or prolonged decline in the Chinese or global economy could adversely and adversely affect our business and financial condition.”

“There is significant uncertainty about the future relationship between the United States and China regarding trade policies, treaties, government regulations, and tariffs. The economic situation in China is subject to changes in global economic conditions as well as domestic economic and political policies. Is sensitive. Expected or perceived overall economic growth rate in China, “Dahil said.

Lufax posted a net profit of 7.27 billion yuan ($ 1.03 billion) for the six months ended June 30, compared with 7.48 billion yuan in the same period a year earlier.

Goldman Sachs, Bank of America Securities, UBS Investment Bank, HSBC and China PA Securities are the major underwriters for the IPO.

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