Business
09:29, 07-Jun-2018
China details CDR rules to allow domestic fundraising for overseas-listed companies
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China's top securities regulator issued rules in nine documents late Wednesday on a test run of issuance and trading of China Depositary Receipts (CDRs).
China is encouraging overseas-listed Chinese companies to launch secondary listings in the domestic market through the issuance of CDRs, modeled on the popular ADRs used in the US.
The trial rules, which are effective immediately, will provide the “institutional foundation” for innovative companies to issue CDRs on the domestic market, the China Securities Regulatory Commission said.
Qualified innovative firms can submit applications for CDR issuance to the CSRC from Thursday.
The pilot CDR program will allow domestic investors’ access to tech giants such as Alibaba and Baidu, currently listed in the United States.
The regulator said it has set strict selection criteria and would strictly control the size, timing and pace of CDR issuance.
The CSRC approved the launch of six Chinese mutual funds on Wednesday, which would be allowed to become “strategic investors” in the upcoming listing of high-tech firms.
Source(s): Reuters
,Xinhua News Agency