The first domestic CDR, originally scheduled for the meeting on June 19th, only changed but changed.
On the morning of June 19, the official website of the China Securities Regulatory Commission announced that Xiaomi Group had carefully studied and decided to implement the listing plan for Hong Kong stocks and China Depositary Receipts in a step-by-step manner, first issue Hong Kong stocks, and then choose to issue Chinese depositary receipts in China. I will apply to postpone the time of the trial. Xiaomi also announced the application for the SFC on Weibo.
In response, the China Securities Regulatory Commission stated: 'I will respect the choice of the Xiaomi Group and decide to cancel the review of the company's issuance filing form by canceling the 88th Committee on Requisition of the 20th Session of the Issuance Examination Committee in 2018.'
Since Xiaomi submitted the initial application materials to the SFC on June 7, the listing issue was swiftly pushed forward. On June 11, the SFC disclosed the Xiaomi CDR prospectus; on June 14, the SFC once again disclosed Xiaomi’s updated CDR prospectus. On June 15th, the Shanghai and Shenzhen Stock Exchange issued a series of CDR transaction matching business rules to prepare pilot innovative companies to access A-shares at the supporting system level. Xiaomi is also considered to be the industry's A-share stock by '12 days' lightning. There will be 'records.
However, Xiaomi's postponement of the CDR issue may not be 'sudden.' Intermediaries who are close to the Xiaomi IPO project disclosed to the “Securities Daily” reporter that the postponement of the CDR is a consensus reached by the CSRC and Xiaomi after several rounds of communication.
CDR as an innovative measure, policy details and market understanding of CDR innovations are inherently challenging. Considering the recent market environment, in order to provide more quality CDRs for pilot issuance, we will postpone the review and follow-up on the market. . 'There are people close to Xiaomi.
It is worth mentioning that on the evening of June 14, the Securities Regulatory Commission announced a 20,000-word initial feedback on Xiaomi, covering 84 issues. It is accurate whether Xiaomi is positioned as an Internet company rather than a hardware company. , Financial status, financial and financial related issues, connected transactions and other issues have been concerned.
On June 15th, Gao Li, spokesperson of the China Securities Regulatory Commission, publicly stated that although based on the nature of the pilot work, the pilot enterprises were queued separately and the audit speed was rapid, but the relevant audit work of the preliminary examination department and the auditing and approving committee was carried out according to regulations. Adhere to the conditions of standards are not reduced, the process does not reduce the link, the pilot companies from the financial and non-financial perspective, all-round, multi-dimensional legal review, in terms of the strict degree of the audit, compared with the general IPO business requirements higher.
Gao Li also stated that reasonable valuation pricing is the basis for investors to obtain reasonable returns, and is the basis for stable market operations. If the issuance price is set at an unreasonably high level, it may lead to a series of problems such as post-listing breaks, affecting innovation pilots. The image of the company damages the interests of investors and market parties. Innovative companies have the characteristics of large investment, high risk, and being easily subverted. In addition, A-shares have always been subject to speculation in new stocks and speculation, and innovative companies may appear to be speculating at the initial stage of listing. After the high, there is a greater risk of falling back. Recently, domestic and foreign markets have similar cases, and many investors suffered losses.
A number of interviewees in the industry told Securities Daily that Xiaomi postponed the CDR issue because of the poor external environment of A shares and the issue of millet valuation pricing.
Previously, a number of sell-side agencies have estimated that the scale of CDR's issuance will reach RMB 30 billion. “The A-share market as a whole is weak, and Xiaomi’s CDR issuance is estimated to be about RMB 30 billion. Large-scale issuance may have a big impact on the market. ' China Merchants Fund said that Xiaomi's postponement of the A-share issuance of CDR may be a valuation issue in the A-share market and the Hong Kong market.
Some analysts also told the "Securities Daily" reporter that at present, the stock market is bleak, not the best time window for Xiaomi's CDR application, and the market is also very worried about the 'blood-blowing effect' of CDR. Xiaomi delayed the CDR application in order to eliminate investment. The worry about Xiaomi’s diversion of large amounts of funds from the listing is a frustrating move. Furthermore, the overestimation of Xiaomi’s valuation is one of the reasons for delaying the CDR issuance process. Such a huge amount of IPO market is difficult to digest in a short time.
It is worth noting that before this, the "Unicorn" strategic placement fund has been started for individual investors, the current subscription time has ended.
And Xiaomi this time delayed the CDR issue, will the Strategic Placing Fund be affected?
In this regard, the above analysts said that for the strategic placement fund, not only investment Unicorn, as long as it is the CDR and IPO of the new economy, it can participate in the strategic allotment. Overall, this suspension, Limited impact on CDR funds.