Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Xiaomi Corporation
  6. News
  7. Summary
    1810   KYG9830T1067

XIAOMI CORPORATION

(1810)
  Report
End-of-day quote. End-of-day quote Hong Kong Stock Exchange - 06/23
27.45 HKD   +1.48%
06/23ALIBABA  : backed Xpeng Files For Secondary Listing in Hong Kong
MT
06/23China's EV maker Xpeng files for Hong Kong listing
RE
06/23XIAOMI  : China's EV maker Xpeng files for Hong Kong listing
RE
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Ninebot's IPO highlights Beijing's eagerness to lure home listings

09/23/2020 | 06:55am EDT
Sign for STAR Market is seen after the listing ceremony of the first batch of companies at Shanghai Stock Exchange in Shanghai

Chinese e-scooter maker Ninebot Ltd will launch a domestic initial public offering soon with a listing structure that shows how eager Beijing is for Chinese tech companies to list at home amid rising tensions with Washington.

China's securities regulator gave Ninebot the go-ahead late on Tuesday to float on Shanghai's Nasdaq-style STAR Market, making it the first company with a VIE structure to sell Chinese Depository Receipts (CDRs).

The variable interest entities (VIE) structure was created two decades ago to circumvent Chinese rules restricting foreign investment in sensitive industries such as media and telecommunications, enabling Chinese companies such as Sina Corp, Netease and Sohu.com to raise overseas money via offshore listings.

Ninebot, which counts Xiaomi Corp as a key customer, plans to raise 2 billion yuan ($294.71 million) in the Shanghai IPO.

Further underlining regulators' tolerance, Ninebot hasn't yet made a profit, and grants shareholders weighted voting rights.

PwC global TMT industry leader Wilson Chow said that China's more inclusive IPO rules show it is "encouraging those foreign-listed, China-based TMT companies to move back to the domestic market."

The VIE structure has been adopted by many Chinese tech firms listed overseas or seeking an offshore listing. In the past, Chinese tech firms seeking to return home needed to go through a lot of hurdles to wind down the structure, Chow said.

Beijing is encouraging domestic listings at a time when U.S. President Donald Trump's administration is threatening to delist U.S.-listed Chinese companies that fail to meet U.S. accounting standards.

"To allow VIE-structured companies to come back is definitely a major policy breakthrough," said Craig Zeng, CFO of Nasdaq-listed Chinese firm LexinFintech Holdings Ltd .

"This will significantly help to bring back China's tech companies, and enhance vibrancy and competitiveness of the Chinese capital market in the long run."

Zheng said LexinFintech will consider a home listing.

VIE

CDRs are the equivalent of U.S-listed American Depository Receipts (ADRs).

"China has the infrastructure ready for ADRs to come back home and get listed," said Jie Lu, Robeco's head of China research.

Ninebot's China listing will also cement the status of VIE in China, where authorities had not officially endorsed the structure.

"There's every indication that the Chinese regulators are fully embracing the VIE structure," said Marcia Ellis, Hong Kong-based Partner at Morrison & Foerster.

Ellis, who helped design VIE nearly 20 years ago for Chinese firms, thought at the time the makeshift structure would be phased out in five years, but now expects it to remain a viable option for the foreseeable future.

"There are huge national champions who utilize this structure," she said.

In addition, "a bunch of companies planning to list on the STAR board will use the VIE structure," she added.

Brian Bandsma, portfolio manager at Vontobel Asset Management, said with China's IPO market getting more attractive, "the U.S. markets will no longer be the default venue for Chinese (tech) companies to raise capital."

But he also cautioned that unless VIE is codified into Chinese law, there's a risk Beijing could change its mind.

"The concern is that if the VIE structures are no longer seen as beneficial to the Chinese government, they could take some action which would cause the structure to become invalid," Bandsma said.

"To some extent, it's at the whim of the government."

($1 = 6.7864 Chinese yuan renminbi)

By Samuel Shen and Andrew Galbraith


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AVICOPTER PLC -0.02% 54.88 End-of-day quote.-12.49%
LEXINFINTECH HOLDINGS LTD. 0.32% 12.46 Delayed Quote.85.97%
NASDAQ COMP. 0.13% 14271.7325 Delayed Quote.10.59%
NETEASE, INC. 0.57% 106.53 Delayed Quote.11.24%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.15% 6.4658 Delayed Quote.-0.30%
VONTOBEL HOLDING AG 0.89% 73.3 Delayed Quote.3.49%
XIAOMI CORPORATION 1.48% 27.45 End-of-day quote.-17.32%
All news about XIAOMI CORPORATION
06/23ALIBABA  : backed Xpeng Files For Secondary Listing in Hong Kong
MT
06/23China's EV maker Xpeng files for Hong Kong listing
RE
06/23XIAOMI  : China's EV maker Xpeng files for Hong Kong listing
RE
06/23XIAOMI  : Ranked 70th on the Top 100 Most Valuable Global Brands 2021
PU
06/22HANG SENG  : Hong Kong Hang Seng Bucks Asian Upswing; Off 0.6% on Tech Slump
MT
06/22Hong Kong stocks fall ahead of Powell's testimony
RE
06/20China's 5G Phone Shipments Surge 134% in January-May Period
MT
06/18XIAOMI  : Timothy O'Toole Discusses The Implications Of The Xiaomi Ruling For Ot..
AQ
06/17FLEXION MOBILE  : launches War & Magic from Goat Games
AQ
06/17MARKET CHATTER : Xiaomi to Hire 20 Autonomous Driving Engineers
MT
More news
Financials
Sales 2021 334 B 51 665 M 51 665 M
Net income 2021 20 744 M 3 205 M 3 205 M
Net cash 2021 61 056 M 9 433 M 9 433 M
P/E ratio 2021 27,8x
Yield 2021 -
Capitalization 574 B 88 616 M 88 643 M
EV / Sales 2021 1,53x
EV / Sales 2022 1,22x
Nbr of Employees 23 410
Free-Float 52,6%
Chart XIAOMI CORPORATION
Duration : Period :
Xiaomi Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends XIAOMI CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 35
Last Close Price 22,89 CNY
Average target price 26,88 CNY
Spread / Average Target 17,4%
EPS Revisions
Managers and Directors
NameTitle
Jun Lei Chairman & Chief Executive Officer
Xiang Wang President
Alain Lam Chief Financial Officer
Yan Qi SVP-Internal Operations & Public Affairs
Dong Sheng Chen Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
XIAOMI CORPORATION-17.32%88 616
APPLE INC.0.97%2 231 136
SHENZHEN TRANSSION HOLDINGS CO., LTD.19.63%22 489
WINGTECH TECHNOLOGY CO.,LTD-3.33%18 404
FIH MOBILE LIMITED33.68%1 317
DORO AB (PUBL)12.63%149