Deloitte assists secondary listing of 360 DigiTech in Hong Kong

Deloitte China assisted the secondary listing of 360 DigiTech, Inc. (360 DigiTech/360 DigiTech-S; stock code 3660.HK) on the Main Board of the Stock Exchange of Hong Kong (the Exchange) on 29 November 2022. This is the 1st return listing in Hong Kong by a Chinese fintech company.

360 DigiTech-S is the 2nd secondary listing served by Deloitte China in Hong Kong this year, and the 8th such listing since the launch of Hong Kong's new listing regime in April 2018. To date, Deloitte China's market share in secondary listings by number of IPOs is more than 40%, leading its peers.

360 DigiTech-S offered 5.54 million shares at HKD50.03 per share, raising about HKD277 million. Assuming full exercise of the over-allotment option, its IPO could raise up to HKD319 million.

About the client

360 DigiTech was listed on NASDAQ in December 2018 (stock code: QFIN). Founded in 2016, 360 DigiTech is a Chinese Credit-Tech platform that provides a full range of technology services to assist financial institutions, consumers, and micro and small enterprises in the loan lifecycle. Its services include borrower acquisition, preliminary credit assessment, funding matching and post-facilitation, with 360 Jietiao application as its primary user interface.

360 DigiTech was incubated in 360 Group, which is committed to becoming a tech platform that connects users with financial partners through products including 360 Jietiao, 360 SME, and 360 Instalment.

Source: Official website of 360 DigiTech and prospectus published by 360 DigiTech-S on 18 November 2022

About this IPO engagement

360 DigiTech started to prepare for a secondary listing in Hong Kong in 2021. It officially kicked off this work in May 2022. To meet the company's challenging listing timetable and Hong Kong's secondary listing requirements, Deloitte China swiftly formed a multidisciplinary professional services engagement team, with members from Audit & Assurance, Engagement Quality Control and Technical, Information Technology & Specialized Assurance, Data Advisory, Internal Control Advisory, Valuation Review, and Tax Review. Partners, managers, and core team members with extensive experience in Hong Kong capital market and the fintech industry and proficiency in US GAAP were pulled into the team.

The engagement team supported 360 DigiTech with its rich industry experience, cross-market technical expertise, and high-quality services throughout the engagement work. In the face of an ever-changing market environment and schedule, the engagement team cooperated seamlessly and completed its work with high quality and efficiency. With the cooperation and joint efforts of the company and various intermediaries, 360 DigiTech passed the hearing on 14 November 2022 and listed on Hong Kong's Main Board on 29 November 2022.

Background and significance of the engagement

360 DigiTech selected Deloitte China as its auditor when it was listed on NASDAQ. Over the years, Deloitte China has maintained a close relationship with 360 DigiTech.

As connectivity between the Chinese Mainland and Hong Kong becomes closer, more US-listed China concept stocks are now considering primary dual listings or secondary listings in Hong Kong. 360 DigiTech-S's listing further strengthens Deloitte China's credentials in secondary listing services in Hong Kong. The high quality and efficiency of our work for the secondary listing of 360 DigiTech in Hong Kong is a successful case of leveraging Deloitte China's experience in diverse capital markets, accounting standards, and specific industries simultaneously. This success lays a solid foundation for serving more companies in emerging industries over the years to come.

Deloitte China congratulates 360 DigiTech on its listing on the Hong Kong Main Board. Deloitte China is dedicated to providing professional, high-quality audit services to clients, helping them continue to forge ahead in a challenging macro-economic and capital market environment. We also look forward to leveraging our experience and perspectives in China and international markets to help more companies diversify their strategic layouts, expand their capital scale, and accumulate advantageous resources.