Finance News

The Chinese language asset administration large Lufax goes public within the USA

A logo of the Lufax website can be 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 for an IPO in the US amid a flurry of capital market activity by Chinese companies.

The Shanghai-based company, which is 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 rated its shares or indicated how many it will offer during the listing.

Chinese tech companies have tried to take advantage of a rally in stock markets to go public, including on Wall Street, despite geopolitical tensions between the US and China.

Electric car makers Xpeng Motors and Li Auto went public in the US earlier this year.

Ant Group, the financial technology giant still controlled by Alibaba founder Jack Ma, is preparing to go public on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange's STAR market, which is a tech board on the Shanghai Stock Exchange Nasdaq style trades.

Lufax's New York listing stems from mounting tensions between the US and China threatening American publicly traded Chinese companies. Washington lawmakers are pushing for Chinese companies to be scrutinized with legislative proposals that threaten to delist some US companies.

This could be a reason why some US-listed Chinese companies, including Alibaba and NetEase, have had secondary listings in Hong Kong.

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

"There is considerable uncertainty about the future relationship between the United States and China in terms of trade policies, treaties, government regulations and tariffs. Economic conditions in China are sensitive to global economic conditions, as well as changes in domestic economic and political policies and the expected or perceived macroeconomic growth rate in China, "the file says.

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

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

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