According to the news, in order to coincide with the CDR's issuance progress, Xiaomi postponed its time to market by 1 week to 2 weeks, and will conduct CDR and Hong Kong IPO pricing on July 9, 2018, and Shanghai Securities on July 16, 2018. The Exchange issued CDRs and conducted IPOs on the Hong Kong Stock Exchange on July 17, 2018.
For the above related rumors, Xiaomi company chose not to comment.
However, the 21st Century Business Herald reporter learned from relevant investment bankers that the news is not accurate: “Now the CDR rules have not come out. How can we set the release date? However, it does not rule out the possibility that the Hong Kong stock IPO and CDR will be done at the same time. Sex, but also depends on the feedback of the last CDR comments."
However, for such a possibility, the Hong Kong Stock Exchange has not denied it.
On the morning of May 31st, Li Xiaojia, president of the Hong Kong Stock Exchange, publicly stated that if the rules for Chinese depositary receipts (CDR) are introduced as scheduled, Xiaomi may choose to list in Hong Kong and CDR simultaneously. Hong Kong has already synchronized A+H shares. The listed listing system believes that similar systems are also easy to operate.
"The mainland exchanges have basically completed the preparation of related technologies and businesses such as CDR issuance," said a person close to the management on the same day.
Although everything is inconclusive, Xiaomi’s stocks have already responded. On May 31st, stocks such as Pulutong (002769.SZ) and Jingda (600577.SH) have all gained daily limit.
The CDR rule is the key
Although the issue of CDR news on July 16 was inaccurate, the above investment bankers also told reporters from the 21st Century Business Herald: “The CDR is definitely going to be issued, and we hope to be able to issue IPOs and CDRs to Hong Kong stocks at the same time. Well, of course, ultimately, we must look at the progress of CDR-related rules and regulations at the policy level."
On the morning of May 31st, Li Xiaoga, president of the Hong Kong Stock Exchange, also stated that if the rules for Chinese depositary receipts (CDR) were introduced as scheduled, Xiaomi might choose to list in Hong Kong and CDR simultaneously.
The CDR is called Chinese Depository Receipt. The Chinese name is "Chinese Depositary Receipt", which is a way for overseas companies to go public in China. Through the CDR, it is possible to attract outstanding Chinese companies listed overseas to the mainland capital market and allow domestic investors to share their development dividends. At the same time, the valuation of A-share related Internet companies is higher than that of Hong Kong stocks, which also has a strong attraction for overseas listed companies.
Regulators are also advancing the implementation of CDR-related methods.
On May 4th, the China Securities Regulatory Commission announced the public solicitation of opinions on the "Administrative Measures for the Depositary Receipt and Transaction". The deadline for feedback is June 3.
At the same time, the vice chairman of the China Securities Regulatory Commission Fang Xinghai said on May 29th at the 15th Shanghai Derivatives Market Forum that it will take a long time for overseas listed Hongchip technology companies to issue CDRs on the Shanghai and Shenzhen stock markets to promote Chinese technology companies. Chinese capital is better integrated.
In the management measures, the domestic company’s listing plan for pilot companies is applicable not only to domestic unregistered companies but also to unlisted red chip companies (referred to as overseas registered companies with major business activities in the country). In addition, the China Securities Regulatory Commission has relaxed the regulatory requirements for pilot companies to be listed in China – as long as they are fully disclosed prior to listing, pilot companies can adopt the VIE structure and multi-level equity structure. The China Securities Regulatory Commission also removed the first public company for pilot companiesDevelopmentThree consecutive years of profitability requirements for stocks.
A Beijing investment banker told the 21st Century Business Herald reporter: “There was news that the first batch of CDR would be Ali, Baidu, etc. However, Xiaomi might indeed be the first batch of jumpers. First of all, he has not yet completed the listing. It is relatively easy to carry out CDR issuance procedures."
At present, CDR is generally considered to be issued in two modes, that is, issuance of new shares or listings. Under the former model, overseas listed companies may issue new shares (CDRs) (similar to additional issuance) to mainland investors for refinancing; No new shares are issued, similar to a domestic derivative financial instrument based on overseas listed shares.
The biggest conference will be Shenzhen
Although not yet determined, millet concept stocks have been buzzing, including Pu Lutong, Jing Da shares and other millet stocks on the May 31 harvest limit, Pu Lutong is the opening price will be a word limit.
Another directly stimulated the concept stock of millet is the largest conference since the establishment of Xiaomi.
On the afternoon of May 31, Xiaomi held the largest conference since its establishment in Shenzhen. Xiao Jun, the founder of Xiaomi, stated on Weibo that Xiaomi 8 is a representative work for eight years.
As the most important conference for the 8th anniversary of the establishment of Xiaomi, it did not land in Beijing but landed in Shenzhen. At this conference, Xiaomi launched all new products and released a new generation of flagship mobile phones, operating systems, and the latest smart TVs. , smart hardware, etc., an unprecedented lineup.
It is worth noting that the 21st Century Business Herald reporter was also informed that on May 30, Lei Jun also visited CITIC Securities Shenzhen Branch. Earlier, the media reported that Xiaomi has authorized CITIC Securities to handle its CDR issue.