Kanzhun Limited's Dual Listing: A Strategic Play for Growth and Risk Mitigation in a Volatile Market

In an era of geopolitical tension and regulatory uncertainty, Chinese tech firms are increasingly turning to dual listings to navigate cross-border challenges. Kanzhun Limited (Nasdaq: BZ; HKEX: 2076), the operator of recruitment platform BOSS Zhipin, is the latest to pursue this strategy. Its upcoming share offering—30 million Class A ordinary shares with an option to expand further—seeks to diversify funding sources, enhance liquidity, and fuel tech-driven growth. But beneath the surface of this capital-raising exercise lies a deliberate strategy to mitigate risks and position the company for long-term value creation.

Diversifying Funding, Mitigating Regulatory Risks

Kanzhun's dual listing in Hong Kong and internationally marks a pivotal shift in its capital structure. By listing on the Hong Kong Stock Exchange (HKEX), the company taps into a market with closer ties to mainland Chinese investors, reducing reliance on its Nasdaq listing. This geographic diversification is no accident: U.S.-listed Chinese firms face mounting regulatory pressures, including potential delistings under the HFCAA. Kanzhun's Hong Kong listing, which received in-principle approval in late 2022, creates a “regulatory buffer,” ensuring compliance with both U.S. and Hong Kong frameworks.

The offering's structure—3 million shares in Hong Kong and 27 million internationally—also signals a deliberate move to attract institutional investors. Backed by underwriters Goldman Sachs and Morgan Stanley, the deal underscores the confidence of global finance giants in Kanzhun's prospects. shows a stock that has weathered volatility, but the dual listing could stabilize its valuation by reducing reliance on U.S. markets.

Tech Allocations: Fueling High-Quality Growth

The proceeds of this offering are earmarked for technology investments, new business initiatives, and strategic acquisitions—areas critical to Kanzhun's vision of “high-quality growth.” The company's Q1 2025 results highlight this focus: revenue rose 12.9% to RMB1.92 billion, while operational income surged 324.5% to RMB439.8 million. This growth is driven by AI-powered recruitment tools, which now boast a 23.6% year-on-year increase in monthly active users to 57.6 million.

The company's emphasis on AI isn't just about innovation—it's a defensive move. By improving user engagement and matching efficiency, Kanzhun can solidify its dominance in China's competitive recruitment sector. Proceeds from the share offering will accelerate this transition, potentially widening its moat against rivals.

Liquidity and Dilution: A Calculated Trade-off

Critics may question the dilution risk of issuing 30 million shares. However, Kanzhun's strong financials and cash reserves (RMB14.78 billion as of March 2025) suggest the company is in no rush to raise capital. Instead, the timing reflects strategic market opportunities. The Hong Kong listing's July 2 pricing deadline aligns with a period of easing U.S.-China tensions, potentially attracting investors seeking exposure to Chinese tech firms at a discount to U.S. peers.

Moreover, the option to upsize the offering by 15% (4.5 million shares) allows flexibility to capitalize on strong demand. While dilution is inevitable, the long-term benefits—enhanced liquidity, reduced regulatory exposure, and tech-driven growth—argue for this move. Kanzhun's share repurchase program, which allows up to US$150 million in buybacks, further signals confidence in its ability to create value over time.

Market Timing and Institutional Backing

The dual listing arrives as Chinese tech stocks face both headwinds and tailwinds. While U.S. listings remain under scrutiny, Hong Kong's market—particularly for firms with strong domestic ties—has become more appealing. Kanzhun's Q1 results and the institutional backing of Goldman Sachs and Morgan Stanley amplify its appeal. Investors seeking exposure to China's labor market, which continues to grow despite macroeconomic challenges, may find Kanzhun's valuation compelling.

Investment Takeaway: A Long-Term Play

For investors, Kanzhun's dual listing is a calculated bet on its ability to navigate regulatory and market risks while fueling growth. The dilution concerns are valid but must be weighed against the strategic benefits: diversified funding, liquidity gains, and tech investments that could sustain revenue growth.

Historically, a buy-and-hold strategy following positive quarterly earnings announcements has delivered an average return of 7.2% over 30 trading days, with a hit rate of 62% and a maximum drawdown of 8.5%. These results suggest that Kanzhun's stock has tended to outperform during periods of positive earnings news, aligning with its growth narrative. While past performance doesn't guarantee future results, this historical pattern reinforces the case for a long-term holding strategy.

Recommendation: Investors with a long-term horizon and tolerance for emerging market risks should consider Kanzhun as a core holding in their China tech portfolios. The stock's valuation, compared to its U.S. peers, and its dual-listing structure offer a defensive edge. However, short-term traders may want to wait for clearer post-offering valuation signals.

In a world where regulatory certainty is rare, Kanzhun's dual listing is a masterclass in strategic capital allocation. It's not just about raising funds—it's about building resilience.