The Chinese government’s plans to introduce Chinese depositary receipts as a means of attracting homegrown tech companies to mainland markets is experiencing pushback, with several major names expressing reservations about the scheme.
Sources have told Caixin that Alibaba and JD.com – two of China’s trademark online brands that have yet to list at home – have both delayed the date for when they plan to issue the securities. A third central participant, Baidu Inc., has stalled in making further concrete plans on any listing.
The hesitancy comes after Xiaomi withdrew its plans for a joint-listing in Hong Kong and the mainland, opting only to go public in the special administrative territory instead. Reports say that Xiaomi, along with the other tech firms, are finding themselves at odds with China’s securities regulators on the issue price mechanism.