In the past years, Kanzhun joined the growing number of US-listed Chinese companies. These companies are also looking to have home listing in Hong Kong. Because, the US accounting rules almost dragged them from delisting. This time too, Hong Kong listing cannot ensure the company’s fate. The US Public Company Accounting Oversight Board, the China Securities Regulatory Commissions, and China’s Ministry of Finance have signed a statement protocol. This agreement might end the dispute on Chinese companies’ forced delisting from the US stock exchanges.
As a result, market participants are still cautious over the preliminary audit deal between two countries. They wanted to make sure to get a chance to get the first batch inspections results. The inspections have now started but it needs months before the conclusions are made public. A third banker delivered arguments. He said that the bulk of Chinese issuers believe the political dispute between the US and China. This would give severe impacts to all aspects especially financial markets. Worse, the inspection result takes time, although Hong Kong listing is the most preferred back-up plan.
Tencent owns a 9.9% stake at Kanzhun. The firm plans to use the proceeds to leverage its user engagement, expand service and enhance core technology capabilities. Plus, they wishes it to use it for working capital. The company announced that it has resumed with a record of 10 million newly registered users. This is from June 29 to August 15 only. Kanzhun’s monthly active users and average daily active users also hit record highs. This is with MAUs increasing by 16% in comparison with June. Just in the first half of 2022, Kanzhun got a net profit of Rmb80m compared to the previous loss of Rmb1.59.