It was reported by the Chinese Securities Journal on Monday that the Chinese search engine giant, Baidu, is now preparing for the issuance of CDRs in the A-share market.
According to people with knowledge of the matter, Baidu, which is currently listed on NASDAQ, has selected Huatai Securities and CITIC Securities as its sponsors for its issuance of CDRs. The two securities firms have been sparing no effort to do the necessary paper work.
If successful, Baidu will become the first US-listed Chinese company which returns to the A-share market via the newly-introduced CDR system which is meant to attract overseas-listed Chinese companies, especially high-tech firms, back home.
"With a good profitability and a relatively simple equity structure, Baidu is highly likely to get back to the A-share market ahead of other overseas-listed Chinese internet companies," said an analyst familiar with the case, adding that Baidu has a good credit record in the US stock market.
Starting as a search engine, the company has been heavily investing in the development of Artificial Intelligence (AI) in recent years, with its conversational AI system, DuerOS, capable of running on over 90 kinds of hardware products in such areas as mobile telecommunication, smart home, and wearable technology.
Meanwhile, up to 100 foreign and domestic automakers such as Mercedes Benz, the BAIC Group, and the BYD Auto Co. have forged partnerships with the company's autonomous driving software platform.
According to Baidu's financial statements for the first quarter, the company generated a total of RMB 20.9 billion during the first three months of this year, a year-on-year increase of 31 percent. Its net profit grew by 277 percent from a year earlier to reach RMB 6.7 billion by the end of March.