The offline shop of NetEase Yeation in Hangzhou, East China's Zhejiang Province Photo: VCG

NetEase Inc, a NASDAQ-listed Chinese Internet firm, won approval to list on the Hong Kong Exchanges and Clearing Ltd (HKEX) on Friday, to become the second Chinese Internet company after Alibaba to list in both China and the US.

In an open letter to shareholders NetEase CEO said the firm is prepared for its Hong Kong listing. "For Internet companies, being slow is a sin. But NetEase is never afraid to be slow, it's not in a hurry to raise money and make money, because it's easy to lose the ability to taste a feast after having too much fast food," NetEase CEO Ding Lei said, according to listing documents from the HKEX.

NetEase will mark its 20th anniversary on the NASDAQ board in June, and the open letter to shareholders was the first since it was listed.

"NetEase looks for smarter money and more picky users. As early as the beginning of 2000, NetEase decided to follow a boutique strategy, which was the right choice we made in the competition," wrote Ding.

Meanwhile, the internet firm could face serious challenges on the US exchanges.

The US Senate passed the Kennedy and Van Hollen's bill on May 20, threatens to delist Chinese companies in the US. The bill could prohibit Chinese companies from US exchanges if they cannot demonstrate they are not under the control of a foreign government or if the US' Public Company Accounting Oversight Board is unable to determine their independence for three consecutive years.

The uncertainty caused by the bill, will likely affect the share prices of NetEase and other Chinese companies listed in the US, said Ding, adding that if NetEase doesn't meet the requirements of the bill it could even be delisted from NASDAQ.

NetEase shares closed at $366.25 on Friday, with a market value of $47.298 billion. Its share price has risen 19.44 percent since the start of 2020.

Net income in the first quarter was 17.06 billion yuan ($2.39 billion), up 18.3 percent on a yearly basis, NetEase's financial statement showed on May 20.