According to report from Wall Street Journal, the NYSE-listed Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) is working on a plan to trade shares back in mainland China.
Even though the most of Alibaba’s business and operations are in China, the company was incorporated in the Cayman Islands. But China’s laws have long prohibited incorporated overseas from selling shares directly to local investors. Also, China currently forbids companies such as Alibaba that have dual-class share structures to list on the mainland market.
The Chinese authorities is making efforts on luring those big foreign listed big companies back to Chinese capital markets too. In recent months, Chinese security regulators have been in touch with some investment banks to evaluate ways to make this work out, according to the precious report of Wall Street Journal.
Other tech companies listed overseas such as Baidu (NASDAQ: BIDU), JD.com (NASDAQ: JD), listed on Nasdaq, and Tencent, listed in HongKong, have all been taken into considerations. Listing them at home has become “a national priority in recent months”.
China’s securities regulator is expected to announce plans for a depositary share regime in the coming months, said people familiar with discussions it has had recently. Additionally, Shares of Alibaba went up immediately after this report.