Wen "Chinese Entrepreneur" reporter Li Yating | Editor Zhai Wenting
Where will millet be listed?
On the morning of March 5, a reporter of "Chinese Entrepreneur" succeeded at the Great Hall of the People and went to the People's Congress Lei Jun. He said that the HKEx's push to "share the same rights of different shares" will promote Internet companies, especially technology innovation enterprises, to be listed in Hong Kong, "because this recognizes the value of the founders in high-tech and innovative enterprises." & rdquo;
This will attract millet to Hong Kong listed, Lei Jun did not give a clear reply. Several times under the reporter's question, he still said "does not respond to the listing issue", then out of the crowd.
In fact, the critical moment of the kick, the listing of millet is full of uncertainty. From the initial public discussion of the hot outside to Hong Kong, to the later "A shares + H shares", is now pending, there is no conclusion.
An insider who has had close contact with millet told "Chinese entrepreneurs" that "the top level of the CSRC had interviewed with Lei Jun. Millet is now more mature and hopes to return (A-share listing)." & rdquo;
During the two sessions, the Internet listed company bigwigs have expressed their readiness to return to A. In such a special context, these people said that millet is currently under heavy pressure.
Hong Kong listed + CDR the most likely
The person in charge of a broker believes that millet listing path selection has three:
First, A-share listing, not only in the framework of "wasting", but also face heavy pressure, to bear the tax costs, foreign exchange entry and exit costs and time costs. Taking into account the recent A-share green light policy for unicorns of new-economy companies, the time cost is the biggest obstacle even though the first two costs are relatively easy to deal with.
The second is "A + H", after the media had reported that millet or using this method listed, but the above analysts believe that this description is not accurate. A + H need to be listed on the company must be registered in the territory, but currently still using VIE VIE architecture, offshore companies Xiaomi Corp. is registered in the Cayman Islands, controlled by the VIE architecture millet Technology Co., Ltd.. If you want to achieve A + H, millet need to readjust the company structure, the establishment of a new listing of the main. As a result, it is difficult to determine whether the market this year.
Third, the use of red chip + CDR way, the first global listing in Hong Kong listed, followed by the rapid domestic A shares issued CDR.
The CDR does not have any requirements on the company's structure. Analysts pointed out that it is not applicable to the Chinese company law, which is equivalent to sending a financial product in the country.
In the domestic capital markets, CDRs have precedents. According to Choi Shin-chan, as early as the early 21st century, the Commission considered this way to go overseas listed in the "prefix" back, but did not make it; 2008 put forward the international board, is also trying to make more than 300 Home red-chip return, but it's gone. This time to mention CDR, sword means overseas listed technology Internet companies.
For companies already listed in the United States, such as Alibaba, Baidu and Jingdong, the CDRs can be issued in the A-shares subsequently. While the market capitalization of less than 50 billion US dollars in the US stock market, then not in the SFC's close attention to this category. Millet, whether it is from the volume or in the industry, have won the SFC attention.
The person in charge believes that millet probably adopt the red chip + CDR way, if you use this approach, millet fastest in the second half of the market. This millet can achieve overseas listing, the stock can also be in the form of CDR circulation of A shares.
Often, CDRs do not take up much of a company's share of liquidity. However, how CDRs are distributed in the country has not yet progressed. "Mainly technical issues. & rdquo;
As for the valuation of millet after the listing, "Finance" had previously reported, according to the internal materials obtained showed that millet held in the beginning of the listing will be held, the proposed valuation of 200 billion US dollars.
Is this valuation too high? Listed people think it is not impossible. "Millet shareholders suffer for many years, in addition, the Hong Kong capital market is recognized mainland companies. & rdquo;
March 2016, Lei Jun had stated "millet will not be listed within five years", two years later, the listing has been firmly established, why millet suddenly accelerate the pace of the market? One industry insider believes that after experiencing the low ebb in 2016, Xiaomi is gaining confidence in both volume and capital markets, and the listing is undoubtedly the best time to come.
As can be seen from the recent moves of the SFC and HKEx, both sides are striving to win over quality companies.
February 26, Xinhua News Agency issued a document "China's capital market" BATJ dream "the round! Subsequently, Li Yanhong, Ding Lei, Liu Qiang East and others per capita during the two sessions stand, "actively respond to national calls, very willing to return A shares." & rdquo;
One person close to the SFC and other agencies used "very determined" to describe the SFC's adjustment of the attitude. He understood the move as a new economic corporation that the SFC hopes for a steady increase in A-shares in the future. "There are not many companies with large A-share market capitalization at present, and some are also traditional industries." & rdquo;
Caixin had previously reported that the first list of shortlisted CDRs was released. There are 8 companies in total. In addition to BAT, there are CITS, Weibo, NetEase and Hong Kong-listed Sunny Optical. In response, these people did not respond directly, but said that the SFC has started to contact some Chinese listed companies in the United States. Some are very positive and some are not active enough.
Positively embracing companies have financing needs on the one hand, and on the other hand the benefits of the combination of investors and consumers are magnified. Less active companies, on the other hand, consider more and more that their lives are outside their borders. The board of directors has generally been internationalized. Existing shareholders often hold the right to vote and it is difficult to explain this behavior. In addition, it is not realistic to issue a particularly high premium in the domestic market.
With the fermentation of overseas listed companies sending back their CDR, the unlisted Internet companies have been affected and they have also begun to consider staying in the country.
The current situation is that as long as the requirements of the new economy unicorn company, the Commission "green light", the recent preparations for listing Foxconn Industrial Internet Company is a strong evidence. IPO prospectus shows that the company continued operating less than three years, and skipped a year or two of queuing period, "the two sides cooperate with each other, the future of the SFC's actions will be beyond our imagination." & rdquo; Another person in close contact with the regulators said.
In the meantime, the Hong Kong capital market has also been enjoying good moves recently. At the end of February, the Hong Kong Stock Exchange released the "Market Consultation on the Listing System of Emerging and Innovative Industrial Companies" and on the other hand, emerging markets such as biotechnology companies that have not enjoyed the same rights in the same share market and biotech companies without revenue Innovative industries listed on the company, once again consult the market opinion.