Alibaba Baidu returns to A shares in June, Tencent absent

On the afternoon of April 17, Tiger Sniffs learned from reliable sources that the three Internet companies Baidu (NASDAQ: BIDU) and Jingdong (NASDAQ: JD) will be the fastest in the U.S. stock market Alibaba.com in June this year. Depository receipts return to A shares, becoming the first Internet technology company to return to A shares. Tencent is not included here.

The above sources disclosed to Tiger Sniff that in order to return to A shares as soon as possible and reduce the process, Ali, Baidu and Jingdong did not issue new shares, and they were all reduced by the old shareholders, selling some of the old shares in the A shares. As Baidu, Jingdong are all adopting. It is the AB share structure. Selling a bit of stock will not affect Li Yanhong and Liu Qiangdong’s control of the company. For Alibaba, the partner system it employs will not be affected by the reduction of major shareholders.

The first reason why there was no Tencent was that Tencent didn't have an AB stock structure. Tencent’s Hong Kong listing had adopted the same rights in the same shares. Ma Huateng’s substantial reduction may destabilize Tencent’s control. In addition, Hong Kong stocks are already open. It is of little significance to rush back to A shares. Therefore, Tencent is not in the first batch.

Prior to this, Caixin.com reported that the first batch of CDRs may be two or four. The more certain ones are Alibaba and JD. The fastest will be in June.

Today, Alibaba, Baidu, and Jingdong have had their head soup.

In fact, over the past few months, 'return to A shares' has become a hot topic, especially during the two sessions in March.

During the two sessions, the Chairman of the China Securities Regulatory Commission Liu Shiyu stated: 'With such a good company's development, we do not enjoy its profits. We are sorry. In the new era, this regret cannot happen.'

At the two sessions, Baidu founder Li Yanhong, Tencent board chairman Ma Huateng, Jingdong founder Liu Qiangdong and NetEase founder Ding Lei were asked whether they would consider returning A shares. Everyone expressed positive or cautious attitudes.

Li Yanhong said: 'Whenever policy allows Baidu to come back, we definitely hope to be able to return to the domestic stock market as soon as possible. 'He said he has always hoped that Baidu can be listed in China as a whole because the major users and markets are all in China, if Shareholders are also the ideal situation in China. He also explained that the reason why the company went public listing in the United States was because China's current policy did not allow it. 'The structure of our VIE is a foreign company from the perspective of Chinese law.'

Ma Huateng also responded to reporters: 'If the conditions are mature, we will consider.' But he did not talk about this topic.

Ding Lei said in an interview: 'Of course we will consider. For a market that is being prepared, it can be listed at any time.'

Liu Qiangdong was asked this question on two occasions. The first time he was asked if he would return A shares, he jokingly said: 'What are the benefits?' Then when asked this question, he said: 'This thing is very simple. As long as the system allows, we are very willing to come back to the A-shares. Now mainly the issue of the listing rules, not our problem. '

The work meeting of the China Securities Regulatory Commission in 2018 called for the first shot to call BATs to return to A-shares. In their minutes of meeting, they stated that: 'We must take the lead in serving national strategies and building a modern economic system, and absorb the mature and effective international capital markets. Institutions and methods, reforming the issuance and listing system, striving to increase the inclusiveness and adaptability of the system, and increasing the support for the new modes of new technologies and new industries.

On February 26, Xinhua News Agency published a commentator’s article entitled “The BATJ Dream of China’s Capital Market”: “Now, as the Chinese economy enters a new era, the national innovation strategy has risen to an unprecedented level. Overseas capital markets have taken measures. To attract China's outstanding innovative companies, it is very urgent for China's capital market to remove barriers and attract more outstanding innovative companies.

On March 30th, the “Several Opinions on Pilot Projects for Issuing Domestic Shares or Depositary Receipts within the Innovative Enterprise” of the China Securities Regulatory Commission was quickly approved by the State Council. The opinion pointed out that the pilot enterprise should be a large-scale red chip company that has been listed overseas and its market value is not low. In 2000 billion yuan. In addition, the comments also emphasized the concept of the new economic company, comprehensive market value and scope, and meet the conditions are Alibaba, China Mobile, Baidu, Jingdong, Netease, China Telecom and other six.

In response to the A-share requirement for profitability, the China Securities Regulatory Commission also relaxed: 'According to its determination of pilot companies in the domestic issuance and listing, it may not be applicable to the requirements of the issuance conditions on the profitability indicators.'

With the support of the country's strong will, everything is right and wherever it is, it is not difficult for enterprises to rush to return to A shares. After all, business is still done at home.

In addition, the return of Alibaba, Baidu, Jingdong and other Internet companies will undoubtedly increase the 'technical gold content' of A-shares, and it will also impact on the so-called high-tech, AI companies, such as 360-bit A-shares listed on the A-share market. To fall or fall.

Because, the real big Boss are back.

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