JD.Com Would Embrace China Listing If New Rules Are Right(Yicai Global) March 6 -- JD.Com Inc. would happily list on one of China's two mainland stock markets, as long as any new listing rules are favorable and the major e-commerce player could get the green light to go public.
"It's quite an easy matter," the Securities Times quoted Liu Qiangdong, chairman of the Beijing-based company, as saying. "The problem now lies in the listing rules, rather than with us."
China has been looking to make its capital market more appealing to new-economy companies since the start of this year. The China Securities Regulatory Commission made clear in January that it will reform listing rules to make them more inclusive and adaptive while offering more support to new technologies and business models. The securities watchdog is preparing a special listing channel for new economy firms in emerging, high-growth technology sectors, as well as unicorns, or startups worth more than USD1 billion.
JD.Com, China's biggest online retailer after Alibaba Group Holding Ltd., went public on the Nasdaq Stock Market in May 2014, raising USD1.8 billion. Alibaba's floatation in New York the following September was the world's biggest. It raised USD25 billion.
Byte Dance Telecommunications Co., one of the highest-valued Chinese tech companies and operator of the country's biggest news app Toutiao, was reported as saying two days ago that it would also welcome the opportunity to make an initial public offering of shares at home should the regulatory environment permit such a move. Up-and-coming internet businesses such as Byte Dance, Beijing Sankuai Online Technology Co. (owner of Meituan, China's version of Yelp) and ride-hailing giant Didi Chuxing Technology Co. are seen as the most promising and disruptive of unicorns.
"We are closely monitoring progress," an official at Byte Dance told state-run news outlet The Paper. "If the policy allows it in the future, we will actively respond to the nation's call and consider listing in the domestic capital market."
The CSRC and Shenzhen Stock Exchange are working to make the environment more favorable for new-economy unicorns, said Wang Jianjun, general manager of the southern bourse, adding that the two have been conducting pilot programs to polish up the new rules and the system is about ready to go.
Zhang Dongke, vice chairman of the Shanghai Stock Exchange, agrees that it is important for the Chinese market to actively embrace new-economy firms this year and to back the development of major companies such as Alibaba, Baidu Inc. and Tencent Holdings Ltd. Collectively known as BAT, the three dominate China's tech sector.
Despite the prospect of more favorable listing rules at home, Chinese internet firms are continuing to pursue US initial public offerings. China's popular video streaming site Bilibili, run by Hode Information Technology Co., submitted an IPO application to the US Securities and Exchange Commission on March 2. It hopes to raise as much as USD400 million. The Shanghai-based company's application came just days after a similar move by rival iQiyi, Baidu Inc.'s video unit.
