The South China Morning Post reported that the detailed rules for the exchanges in Shanghai and Shenzhen may allow mainland investors to trade mainland-based technology companies such as Alibaba that are listed in the United States as soon as this year.
The paper quoted sources as saying that VIE-related restrictions are unlikely to be withdrawn in the near future, but domestic deals for overseas listed stocks may be easier to achieve.One possible approach is to select a basket of stocks listed in the United States, introduce market-makers, trade and settle on mainland time .
VIE refers to the control structure of Mainland domestic companies controlling domestic operating companies through the establishment of offshore companies and related shareholding structures and control agreements, etc. so as to realize the control structure of "domestically engaged in business operation and overseas entities listed overseas".
Mainland technology companies such as Baidu, Alibaba, Tencent and Jingdong, Sina and other technology companies are using VIE structure in the A-share market. If these high-quality technology companies and A shares missed, means that A-share investors will not be able to share them High dividend brought by.
According to the report, the discussion and preparation of the above concept of possible shares in the aforesaid possible transaction accelerated after Xiaomi decided to go public in Hong Kong. As the SFC system convenes its annual work conference this year, the outside world has reported that the overseas listed technology giant may return to A Stock policy signals.
The 2018 Work Conference of the CSRC System held in Beijing at the end of last month put forward that in order to serve the national strategy and build a modernized economic system, we should absorb mature and effective international capital market systems and methods, reform the issuance and listing system, and strive to increase the system's inclusiveness And adaptability, increase new industries and new industries new mode of support for new models.
China Securities Journal quoted analysts as saying that in the future, A shares will be devoted to fostering a group of their own "unicorn" technology companies and the return of some listed overseas technology giants is also possible. On the 1st of this month, Xinhua News Agency Also issued a document on the SFC said the above position commented that, A shares have their own "BATJ" or will no longer be a dream.
Jiang Chaotiao Hai Tong Securities team believes that in terms of system adjustment, two points worth learning from: First, the profitability of innovative corporate finance requirements improved, only to see the profit pointer will miss the innovative businesses like Amazon, the second is the same share the right to Institutional arrangements, it is this point to attract the world's best companies such as Alibaba.