Chinese search giant Baidu Inc. is drawing up plans to apply for a Chinese Depository Receipts issuance, so it can list on a domestic exchange, China Money Network reported, according to local media, citing insiders.
If the application is successful, it would make Baidu the first Chinese technology company to return home after having listed overseas, according to the report. The size and pricing of the planned CDR have not been reported but it is expected to be discounted, based on its stock price in the U.S.
The local media reports come shortly after Chinese smartphone maker Xiaomi Inc. secured Hong Kong stock exchange approval for its $10 billion IPO. Xiaomi will make its CDR's accessible to local investors around July 9.
China's Alibaba Group Holding Ltd. and JD.com Inc. reportedly also started preparing for a CDR issuance. However, this reportedly did not materialize due to Alibaba's complicated shareholding structure and JD.com reporting profits only for the first time since its IPO.
The China Securities Regulatory Commission recently published trial rules for issuance and trading of CDRs. Technology companies that are deemed strategically important by the Chinese government are eligible.
