Mar 10, 2025
Full Truck Alliance (FTA), often hailed as China’s “Uber for trucks,” is contemplating a renewed push for a secondary listing in Hong Kong. According to Reuters, this reconsideration comes amid a surge in investor optimism and ongoing geopolitical frictions between China and the United States.
Originally, FTA had planned a dual primary listing in Hong Kong in 2022 as a strategy to mitigate risks due to rigorous audit mandates impacting U.S.-listed Chinese enterprises. However, these plans were shelved late in 2022 after developments that allowed U.S. auditors unprecedented access to Chinese firms, alleviating delisting concerns for approximately 200 Chinese entities from U.S. exchanges.
Simon Cai, the Chief Financial Officer, emphasized that safeguarding against U.S.-related risks, particularly political ones that have arisen since former President Trump’s tenure, remains their core strategy. Other favorable outcomes, like augmented valuation and liquidity, are seen as additional advantages.
FTA, which became publicly traded in New York in 2021 with backing from prominent investors like SoftBank’s Vision Fund and Tencent Holdings, remains part of the few yet to explore a secondary listing in Hong Kong. The Hang Seng Tech Index has experienced a notable rise above 30% in the current year, buoyed by investor interest driven by expectations of supportive measures for China’s private sector and the promising AI segment.
On the operational front, FTA’s performance has been strong. In 2024, the company reported completing close to 200 million orders, equivalent to a 24% increase compared to the previous year. IndexBox data suggests this growth contributes significantly to a robust 33% rise in annual total revenue, reaching 11.2 billion yuan ($1.55 billion), and a 40% jump in net income to 3.1 billion yuan.
As Beijing’s policies become increasingly favorable for private enterprises, confidence among global investors in Chinese stocks, including FTA, is on the rise. Among notable investors are Norges Bank Investment Management, BlackRock, and Fidelity, which have been expanding their stake in the company.
Moving forward, FTA is channeling investments into artificial intelligence technology, aiming to launch an AI-driven nationwide system to enhance order fulfillment efficiency by year-end. Additionally, after spinning off its cold chain division, which anticipates raising approximately 200 million yuan in its recent fundraising round, the unit intends to potentially list on the Hong Kong or mainland China exchanges, targeting a substantial market cap post their public offering, projected for 2026 or 2027.
