China plans new share issue option to bring tech giants home

HONG KONG, Mar 05 (Reuters): China may allow its offshore-listed tech giants to sell a form of shares on the mainland, people with knowledge of the plan said, in a move that would pit Shanghai and Shenzhen against Hong Kong in the battle to host the country's tech giants.

While China is home to some of the world's biggest tech companies, most are listed offshore, including Alibaba Group Holding Ltd, Baidu Inc, JD.com Inc, and Tencent Holdings Ltd.

Plans being considered by China's securities regulator could give Chinese investors access to those and other companies via depositary receipts, the people said.

Depositary receipts - common in the United States among other countries - are not technically shares, but certificates that allow investors to hold shares listed elsewhere.

The planned move forms part of efforts by Beijing to counter the threat of a large number of its local technology companies opting for New York or Hong Kong listings instead of their home market, one of the people said.