E-commerce Firm Alibaba Weighs Listing in‎ Mainland China Reports Kangyo Yokohama Securities

Alex Parker, Head of Corporate Equities at Kangyo Yokohama Securities commented saying "the planned move ‎forms part of efforts by China to enable these overseas-listed tech giants to find ways to float ‎shares on domestic exchanges."‎

Alex Parker, Head of Corporate Equities at Kangyo Yokohama Securities commented saying "the planned move ‎forms part of efforts by China to enable these overseas-listed tech giants to find ways to float ‎shares on domestic exchanges."‎

The new investment ‎vehicles, though are not technically stocks, give local investors exposure to ‎some of the country's top tech firms as CDRs allow them to hold shares listed ‎outside mainland.‎

Back in 2014, Alibaba Group Holding held a record $25 billion initial ‎public offering in New York after financial regulators in China and Hong ‎Kong didn't accept its proposed governance structure.‎

"Listing of overseas-listed, domestic technology companies in China could help drive more funds ‎from the mainlanders, and also help convince global companies later, in particular ‎technology-related ones, to explore the possibility of selling shares in Chinese market," said Charles Roth, Head of Corporate Trading at Kangyo Yokohama Securities.

It also secures greater access to China-based investors, who are familiar with its operations, ‎and allow Alibaba to benefit from Beijing's growing support for financial services ‎innovation.‎

Similar to many China's biggest tech companies, Alibaba has opted for New York ‎or London listings instead of their home market. The list includes Baidu, Sogou Inc., ‎JD.com, and Tencent Holdings Ltd.

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