Overview of the CSRC’s newly published rules on the issuance of Chinese Depository Receipts
The China Securities Regulatory Commission (CSRC) recently published the “Chinese Depository Receipt (CDR) Issuance and Trading Administrative Measures (Trial)” and other rules in relation to the issuance of shares and CDRs by pilot innovative enterprises. The rules came into force on 6 June 2018, the date of promulgation.
The introduction of CDRs is expected to lure Chinese “tech unicorns” to float on the mainland exchanges. The move came shortly after HKEX adopted its new listing regime for “new economy” companies. Together, these regulatory changes provide additional strategic financing platforms for innovative Chinese enterprises.
This Capital Markets Update provides an overview of the relevant requirements for an unlisted or overseas-listed pilot red chip enterprise to issue CDRs.