(Yicai Global) May 24 -- Two of China's biggest tech firms, Baidu Inc. and NetEase Inc., are edging closer to listing China Depositary Receipts as a number of America-listed companies look to benefit from capital back home.
The pair are aiming to offer the CDRs as early as the end of June, the same time as China's two largest online retailers JD.Com Inc. and Alibaba Group Holding Ltd., financial news outlet Caixin quoted multiple sources as saying. Baidu has selected Huatai Securities to underwrite its offer, while NetEase will use CITIC Securities and Huatai.
China began entertaining the idea of CDRs at the beginning of the year as it looked to rejuvenate the mainland market by bringing home overseas-listed tech giants and encouraging new listings. The alternative listing approach skirts around legal barriers, such as minimum profit requirements and restrictions on dual-class shares.
Electronics manufacturer Xiaomi Inc. is also among companies expected to make a CDR offering. It filed in May for an initial public offering in Hong Kong, and has agreed to list some of its shares on the mainland via the CDR scheme after that is complete.
Editor: James Boynton