• Chinas Mainland to ease rules on pricing caps

China will use cornerstone investors to help its overseas-listed tech giants such as Alibaba and Xiaomi [IPO-XMGP.HK] to sell shares at home, on worries the size of the deals could overwhelm mainland market.

This departure from norm by China, where equity offerings are typically sold without such strategic investors, comes at a time when the country is looking to tempt its offshore-listed tech behemoths into secondary listings using the planned Chinese depositary receipts (CDRs).

Beijing could also rip up its unwritten rules on pricing caps to make way for these blockbuster deals.

Selling CDRs equivalent to say about 1 percent of Alibaba's market capitalization would mean raising $5 billion in Shanghai or Shenzhen, marking what would be China's largest share sale on the open market since 2009.