Coach parent to delist in Hong Kong
Coach parent Tapestry says it will delist from the Hong Kong stock exchange.
Tapestry this week replaced the Coach name on the exchange’s ticker. It said it was withdrawing from local listing because of low volumes in trading of its shares and that it would now focus on its primary listing in New York.
Bloomberg reports that a lack of interest from investors in the former British colony is common to most of the companies that have a so-called secondary listing in Hong Kong, including Fast Retailing, the Japanese parent of Uniqlo and GU.
“It is difficult to see what benefits the secondary listings in Hong Kong have brought these companies,” Robert Cleaver, a corporate lawyer at Linklaters LLP, told Bloomberg. “Trading tends to gravitate to the market where the most liquidity is, which is typically where the primary listing is.”