Smartphone maker Xiaomi’s China depositary receipts set to secure green light from regulators this week
Analysts say the fast-track application is a clear sign that Beijing is determined to bolster domestic listings of big technology firms
Smartphone maker Xiaomi could be given the green light for the listing of its China depositary receipts on the Shanghai Stock Exchange on Wednesday, providing a gateway for ordinary Chinese investors to eventually own a stake in the smartphone maker which is also expected to list shares in Hong Kong next month.
If it gets the nod at a hearing with the China Securities Regulatory Commission (CSRC) on Wednesday, Xiaomi will have spent just two weeks awaiting approval, a mere fraction of the minimum 18 months applicants can usually expect to wait.
Analysts say the fast-track application is the latest sign that Beijing is determined to bolster domestic listings of big technology firms.
“This quick pace of arranging an IPO has never been seen before on the mainland market,” said Ivan Li, an asset manager with hedge fund Loyal Wealth Management. “It is a clear message that the regulator wants to see an issuance of CDR shares sooner rather than later.”
The watchdog sent Xiaomi a list of more than 80 questions last week raising concerns about the pricing of the IPO. But a source with knowledge of the CSRC’s thinking said this would not deter the review committee from granting Xiaomi approval for the flotation.