China's Internet search leader Baidu.com Inc is considering a domestic listing, a step toward advancing its long-term aim to acquire search engine-related companies, a senior executive said.
"We have made some informal communications with officials at the China Securities Regulatory Commission for a possible domestic listing," Chief Financial Officer Shawn Wang said.
"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. But regulators are considering allowing overseas firms to issue Chinese Depositary Receipts (CDRs) according to sources.
"A listing would further Baidu's long-term interest 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.
Baidu, which has said it plans to launch a blogging service called Baidu Space, said it had launched a beta version of the product in July, but Wang declined to give details on the official launch date.
Global giants Microsoft, Google and Yahoo already offer blogging services in China, in a crowded sector also populated by several homegrown players such as Bokee.com, Blugbus.com, and BlogCN.com.
Baidu, a big hit in their Nasdaq debut last year, saw its shares more than quadruple on its first day of trading in June 2000 to USD122.54 per share after opening at USD 27.00. In June 2006 shares of Baidu fell as much as 6.8 percent after Google reported it sold its 2.6 percent stake.
