HONG KONG (AP) — JD Logistics' shares were up 2.8% after jumping as much as 18% in their trading debut Friday in Hong Kong.
The company is a subsidiary of Chinese e-commerce giant JD.com. It is the latest technology company to list in the semi-autonomous Chinese city as Beijing intensifies scrutiny of the technology sector.
The firm raised $3.1 billion in its initial public offering. That’s the second largest for this year in Hong Kong after short-video firm Kuaishou raised $5.3 billion.
JD Logistics CEO Yu Rui said in an interview with reporters Friday that the funds raised from its IPO will go to expanding its logistics network, including in smaller cities in China, and worldwide.
“We will focus on the supply chains and improve our services,” Yu said.
The company provides various services such as warehousing, last-mile deliveries and cold chain logistics, according to its prospectus.
It was set up in 2007 by JD Group to facilitate warehousing, handling of inventory and e-commerce deliveries as the online shopping industry boomed in China. JD Logistics was spun off in 2017 as a standalone unit.
Beijing recently has been cracking down on China's thriving internet industry, seeking to exert more control and curb anti-competitive behavior, with actions taken against companies including Alibaba, Tencent and Meituan.
However, e-commerce got a huge boost in China and elsewhere with many people shopping online during the pandemic.