CDRs De­but

Beijing Review - - This Week Economy -

Chi­nese tech com­pa­nies listed over­seas will soon is­sue Chi­nese De­pos­i­tory Re­ceipts (CDR) on the Shang­hai and Shen­zhen stock ex­changes, Fang Xing­hai, Vice Chair­man of China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion (CSRC), said on May 29.

Fang said that the move would ef­fec­tively com­bine Chi­nese tech com­pa­nies with Chi­nese cap­i­tal as “red-chip” en­ter­prises, which op­er­ate in China but are regis­tered and listed over­seas, re­turn to the A-share mar­ket by is­su­ing CDRs.

CDRs, which are sim­i­lar to U.S. de­posi­tary re­ceipts, are cer­tifi­cates al­low­ing in­vestors to hold shares listed across bor­ders.

The CSRC re­leased draft rules in May un­der which the CDR pi­lot pro­gram ap­plies to firms listed over­seas—each with a mar­ket cap­i­tal­iza­tion of no less than 200 bil­lion

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