mulls China listing

04 Sep 2006

China's Internet search leader is considering a domestic listing, a step toward advancing its long-term aim to acquire search engine-related companies, a senior executive, quoted by a Reuters report, said.

The Reuters report quoted the firm's CFO Shawn Wang, as saying that, known as the 'Chinese Google' has had informal talks with China's stock regulator, but added that such a listing is currently facing some legal obstacles.

'We have made some informal communications with officials at the China Securities Regulatory Commission for a possible domestic listing,' Wang was quoted by Reuters as saying. 'However, we are still facing many legal obstacles if we want to list domestically as there hasn't been any specific regulations which allow the likes of Baidu to list domestically,' he said, adding that legally, Baidu is a wholly foreign capital-invested company.

So far, no foreign firm has been allowed to list on China's stock markets, the report said.

But regulators are considering allowing overseas firms to issue Chinese depositary receipts (CDRs), according to a document obtained by Reuters earlier this year.

'A listing would further Baidu's long-term interest"&brkbar; and we are also continuously interested in acquiring search engine-related companies which would complement the company's core business,' said Wang, who did not say how much Baidu aimed to raise from the listing.

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