The Ping An Insurance Group Co. backed company aims to file for a listing in Hong Kong as soon as the second half of this year, according to people familiar with the matter who asked not to be named because the information is private. The discussions are preliminary and could be subject to change, according to the people.
Businesses with sensitive data from Beijing could be forced to leave the US exchanges as the two countries struggle to reach an agreement allowing American regulators to inspect Chinese businesses.
In a statement, Lufax said it had looked at a potential listing on the Hong Kong stock exchange without setting a timetable, but it didn't want to comment further. Lufax's shares rose by as much as 3.5% in US premarket trading, while other Chinese stocks including Alibaba Group Holding Ltd. fell.
The US and China have been at odds over this issue for two decades. Mainland China and Hong Kong are the only two jurisdictions in the world that do not allow inspections by the Public Company Accounting Oversight Board, with officials there claiming national security and confidentiality concerns. The deadline for businesses that don't comply is approaching, and the clock is ticking on a congressionally imposed deadline of 2024.
Lufax was on the New York Stock Exchange days before China imposed a major regulatory crackdown on the tech sector, epitomized by the torpedoing of Ant Group Co.'s initial public offering in late 2020.
Lufax's shares have gone down about 70% since their debut in October 2020, compared to a 51% drop for the ARK Fintech InnovationETF.
Lufax, once one of China's largest peer-to- peer lenders, was forced to diversify into more traditional offerings including wealth management and retail lending after Chinese authorities launched a sweeping crackdown on the P 2 P sector four years ago.
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