CHINA’S push to get its fastest-growing companies to list shares at home could trigger a feeding frenzy from investors chasing the flashiest securities in a market dominated by old-economy stalwarts.

China is trying to stem an exodus to American markets — and that’s good news for U.S. investors as it may bring a valuation boost. From Alibaba Group Holding Ltd. to Baidu Inc., the country’s brightest tech stars have for years chosen to debut in New York despite once-richer valuations at home, drawn to abundant capital and the prestige of a marquee international listing.

But executives say China is now pondering regulatory changes to catch the next wave of debutantes like Xiaomi Corp., while helping U.S.-listed companies create Chinese Depositary Receipts (CDRs) to tap trillions of dollars in domestic savings.

The chief executives of Baidu, Netease Inc. and 58.com Inc. last week were among those who expressed interest.

Xiaomi is now said to be considering a mainland listing as part of a much-anticipated 2018 coming-out party. The stock exchange in Shenzhen is said to fast-track tech initial public offerings (IPOs) for 2018. And regulators have even reached out to Alibaba and Hong Kong-listed Tencent Holdings Ltd., Caixin reported, together worth almost US$1 trillion.

However it shapes up, the process is likely to transform the country’s stock markets by hiking tech sector representation. Companies that choose CDRs may enjoy higher valuations because of a paucity of celebrated names, and because the individuals that make up four-fifths of trading will back brands they know.

Consider: artificial intelligence play iFlytek Co. trades at 156 times earnings — several times the U.S. market average. When security business Qihoo 360 delisted from the United States and re-floated in Shanghai as 360 Security Technology Inc., its value leapt more than five times. Hong Kong-traded PC maker Lenovo Group Ltd. changes hands at a two-year earnings multiple of about 10 times: a third the valuation of Shenzhen-listed rival Inspur Electronic Information Industry Co.

“The U.S. ADRs are relatively the best companies in China, and the domestically listed firms are of lesser quality, so you’re going to see a higher valuation,” said Blue Lotus Capital Advisor Ltd. founder Eric Wen. “This is also a good way for Chinese citizens to enjoy the growth of these companies.” (SD-Agencies)