Chinese smartphone maker Xiaomi filed an application to issue a CDR (Chinese Depositary Receipt) today, June 8th,  with the China Securities Regulatory Commission, local media is reporting. If permitted, Xiaomi could be the first company to issue a CDR.

The Beijing-based smartphone giant filed for a Hong Kong IPO in March this year with a valuation expected to top tens of billion dollars. The implementation of CDR allows domestic investors to hold shares of overseas-listed companies. Xiaomi is expected to be the first company to benefit from the mechanism, which underlines a dual listing of the firm both in Hong Kong and mainland China.

Xiaomi is potentially reserving up to 30% of its new issue for CDR buyers and that would be about $3 billion if the assumptions of the fundraise play out, Reuters citing people with knowledge of the matter.

China has some rigid specifications for companies that want to issue CDRs on the Shanghai and Shenzhen stock exchanges. First, they must engage in high-tech industries of strategic importance for the country, such as the internet, big data, cloud computing, AI, etc. Secondly, overseas-listed companies must have a market value of no less than RMB200 billion (US$31.3 billion). Unlisted ones must have an operating income of no less than RMB3 billion in the most recent year and a valuation of no less than RMB20 billion.