Pony Ma: Tencent mulling A-share listing

Updated 2018-03-26 15:17:04

Pony Ma Huateng, chairman and CEO of Chinese internet giant Tencent, indicated his support for the company's listing both in Hong Kong and the Chinese mainland, and said he has discussed Tencent's A-share flotation during the two sessions, which concluded last week.

Ma made the remarks at the China (Shenzhen) IT Summit on Sunday, according to a transcript from financial news outlet wallstreetcn, which broke the Hong Kong-listed company's silence on returning to the mainland stock market.

Chinese business magazine Caixin earlier reported Tencent has been singled out as one of eight companies in the first batch to issue Chinese Depository Receipts — similar instruments to American depositary receipts, which are certificates that allow investors to hold shares listed across borders.

The other seven are Baidu, Alibaba, JD, Ctrip, Weibo, NetEase and Sunny Optical, which will go back to the A-share market via the CDR.

In Tencent's 2017 Fourth Quarter and Annual Results announcement Wednesday, Ma also said the company will consider issuing CDRs if conditions permit, the Paper reported.

To woo tech giants home, China's regulators have been working hard. Yan Qingmin, the deputy head of the China Securities Regulatory Commission confirmed to Securities Times on the sidelines of the two sessions that CDRs will be released very soon, and the instrument is an effective measure for enabling Chinese enterprises listed elsewhere to return to the mainland's A-share market.

China's investment bank China International Capital Corporation Limited predicted China will release a draft on CDR rules after the two sessions.

For years, China's capital market was dominated by traditional industries such as property development, finance and industrial materials.

Innovative firms, tech startups in particular, face legal and technical barriers to list on the A-share market, including restrictions on weighted voting rights, or dual-class shares, and mandatory requirements on IPO applicants' profitability.

Tech firms have declared support for the China-based listings. China's search engine giant Baidu Inc, Chinese game developer NetEase Inc, Chinese search engine Sogou Inc and major online marketplace operator 58.com are among a host of firms interested in a secondary listing at home.

If CDR rules are released soon, China's high-tech titans Alibaba and JD will probably issue CDRs in June, Caixin reported, citing a person familiar with the matter.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 15 2018 15:23:30

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 15 2018 15:23:30

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 15 2018 15:23:30

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords