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E-commerce Firm Alibaba Weighs Listing in Mainland China Reports Kangyo Yokohama Securities
Alex Parker , Head of Corporate Equities at Kangyo Yokohama Securities commented saying "the planned move forms part of efforts by China to enable these overseas-listed tech giants to find ways to float shares on domestic exchanges."
The new investment vehicles, though are not technically stocks, give local investors exposure to some of the country's top tech firms as CDRs allow them to hold shares listed outside mainland.
Back in 2014, Alibaba Group Holding held a record $25 billion initial public offering in New York after financial regulators in China and Hong Kong didn't accept its proposed governance structure.
"Listing of overseas-listed, domestic technology companies in China could help drive more funds from the mainlanders, and also help convince global companies later, in particular technology-related ones, to explore the possibility of selling shares in Chinese market," said Charles Roth , Head of Corporate Trading at Kangyo Yokohama Securities.
It also secures greater access to China -based investors, who are familiar with its operations, and allow Alibaba to benefit from Beijing's growing support for financial services innovation.
Similar to many China's biggest tech companies, Alibaba has opted for New York or London listings instead of their home market. The list includes Baidu, Sogou Inc., JD.com, and Tencent Holdings Ltd.
Media Contact: Fujimura Toki, fujimura.toki@kysecurities.com, 81345790434