Published By : 20 Jun 2018 | Published By : QYRESEARCH
Xiaomi, the Chinese smartphone giant, is planning to postpone its application for the mainland offerings for China depositary receipts, or in short CDR. The company wants to wait till it finalizes a separate listing in Hon Kong, revealed the firm on Tuesday. The announcement has cast a cloud on Beijing's efforts to lure Chinese tech companies back home. Xiaomi is anticipated to raise nearly US$10 bn in Hong Kong and the mainland offerings. The company further stated that it would apply to securities regulator in China to postpone the review of its application for the CDR offering. The smartphone maker had been long expected to be the avant-garde of CDRs, which are designed to attract domestic tech companies to sell their shares in China itself and give mainland investors the access to tech champions in this country.
On the wee hours of Tuesday, June 19, 2018, Xiaomi took the decision to delay the CDR section of its deal, according to sources close to the company. One of them even said that the main reason behind the postponement was that it appeared that, by the end of June, CDR rules and regulation would not be finalized. However, this postponement to the CDR issuance will not have any impact on the Hong Kong listing. Xiaomi did not reveal the reason behind the postponement of the mainland offering, though sources close to the matter have said previously that the process to sort out the CDR rules and regulations could mean that it might take longer than what is expected to finalize their execution.