Search giant Baidu said in documents submitted to the US Securities and Exchange Commission that it is evaluating the possibility of issuing China Depositary Receipts (CDRs), our sister site is reporting (in Chinese).
In early June, Baidu reportedly selected Huatai Securities and CITIC Securities as sponsors for the issuance of CDRs.
Should the move materialize, Baidu may become the first company to return A shares from the Nasdaq through the CDR process.
China’s depositary receipts are a way to bring foreign-listed Chinese companies back home by allowing those living domestically to invest in them.
The China Securities Regulatory Commission (CSRC) adopted a set of draft rules in early June.
The regulations provide an “institutional foundation” for domestic companies issuing CDRs in the Chinese market.