(Yicai) March 3 -- NetEase said it expects to convert its secondary listing on the Hong Kong Stock Exchange into a dual primary listing within a year after most of its global trading volume shifted to Hong Kong, sending its shares higher today.

NetEase [HK: 9999] moved up as much as 3.9 percent to HKD184.30 (USD23.60) in Hong Kong intraday today after its US-listed shares [NASDAQ: NTES] climbed 0.2 percent to USD115.19 yesterday.

The Hangzhou-based firm said yesterday that it was notified by HKEX that 55 percent or more of its global total trading volume by value for fiscal year 2025 was conducted on the Hong Kong exchange, meaning its shares are deemed to have largely and permanently transferred to the city under local listing rules.

HKEX will grant NetEase a 12-month grace period, after which it will automatically be regarded as having a dual primary listing starting from Feb. 27, 2027. At that point, NetEase must fully comply with rules applicable to dual primary listed issuers, and exemptions related to its current secondary listing will no longer apply.

NetEase said it is assessing the impact of the transition and will submit monthly updates to HKEX on its compliance with dual primary listing requirements, while disclosing any significant developments to shareholders and potential investors in a timely manner.

The key difference between a dual primary listing and a secondary listing in Hong Kong is that the former requires full compliance with the listing application process. Under a dual primary listing structure, a company’s delisting in one market does not affect its listing status in the other. In addition, companies with dual primary listings are eligible for inclusion in the Hong Kong Stock Connect program, while secondary listed firms are not currently eligible.

Chinese companies with dual primary listings in both the United States and Hong Kong include e-commerce giant Alibaba Group Holding, electric vehicle makers Xpeng and Li Auto, and video-sharing platform Bilibili.

NetEase was listed on Nasdaq in 2000 and completed its secondary listing in Hong Kong in 2020. Last year, its net profit rose 14 percent from a year earlier to CNY33.8 billion (USD4.8 billion), while revenue increased 7 percent to CNY112.6 billion (USD16.1 billion), according to its annual report.

Editor: Emmi Laine