Phone maker Xiaomi moving fast on CDR application
New rules will allow domestic investors to hold shares of overseas-listed innovators, such as Chinese internet giants like Baidu and Alibaba
Chinese phone maker Xiaomi is planning to file an application to issue a CDR — a Chinese Depositary Receipt — to the China Securities Regulatory Commission, as early as Thursday, Yicai.com reported.
A source close to Xiaomi confirmed to Yicai.com on Thursday afternoon that they are preparing for the application which could be submitted on the same day.
If permitted, Xiaomi could be the first unicorn company to issue a CDR.
On Wednesday night, the Chinese securities regulator adopted new rules governing the issuance of CDRs, which are surrogate securities that allow domestic investors to hold shares of overseas-listed innovators, such as Chinese internet giants like Baidu and Alibaba.
Overseas-listed companies in high-tech or strategic emerging industries, with a market value of no less than 200 billion yuan (US$31.3 billion) can apply for the qualification to issue CDRs on the Shanghai and Shenzhen stock exchanges.
So do companies with an operating income of no less than 3 billion yuan in the most recent year and a valuation of no less than 20 billion yuan.