Xiaomi postpones issuing CDR

Xiaomi has decided to first offer shares in Hong Kong and then issue China Depositary Receipts (CDR) at a "proper time", the company announced on its Sina Weibo official account on Tuesday.

China Securities Regulatory Commission, the country's top securities regulator, said it respects Xaomi's choice and would cancel its schedule to review the prospectus on Tuesday filed by Xiaomi.

Xiaomi first filed its prospectus to the commission on June 7 and later updated the prospectus on June 14, after which the commission disclosed its lengthy feedback in the form of 84 classified questions, many more than the questions raised for a company planning an IPO in the A-share market.

These concerns relate to Xiaomi's licenses on online business, Xiaomi's ecosystem companies, Xiaomi's risk disclosure, Xiaomi's shareholding structure and Xiaomi's research and development, etc.

The CSRC earlier this month issued rules on a test run of issuance and trading of CDRs.

The rules, which became effective when issued, lay the institutional foundation for innovative firms to issue CDRs in domestic capital market, said an online statement of the commission.

Xiaomi is the first company to file a prospectus for issuing CDRs.