Baidu ponders CDR issuance, return to A-share market
26 June, 2018
Chinese search engine giant Baidu said it is assessing the possibility of issuing a Chinese Depositary Receipt as well as listing in the domestic A-share market, The Paper reported.
According to documents submitted to the US Securities and Exchange Commission, Baidu disclosed that if the company decides to issue a CDR and is given the green light by relevant regulatory agencies, the total number of shares issued by Baidu will see an increase.
However, Baidu also said that there is no schedule for the submission of the CDR application and the plan could change based on the market and other conditions.
Previously, it was reported that Baidu selected Huatai Securities and CITIC Securities as sponsors for the issuance of a CDR, and would be the first Chinese stocks to return A shares from Nasdaq through the CDR process.
Depositary receipts are surrogate securities that allow domestic investors to hold overseas shares. Thus, CDRs will give access to Chinese investors to buy into tech giants such as Baidu and Alibaba, which have headed overseas to go public.
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