(Yicai Global) March 19 -- China may issue draft rules on China Depository Receipts, CDR, after the end of Two Sessions, annual meeting of China’s legislature, said one of the country’s leading investment banks. It comes at a time when China encourages new economy and tech companies to list in the Chinese mainland.
China will release CDR implementation rules and start to accept application from companies after the opinion-seeking period comes to an end, said Wang Hanfeng, chief strategy analyst of China International Capital Corporation, in a report published on the bank’s WeChat official account today.
Companies which adopt new technologies and innovative business models as well as those from the the emerging industries will be given priority to list in the Chinese mainland within one year of their CDR issuance, the report claimed.
The overseas-listed Chinese new economy companies can go public in the A-share market through issuance of CDRs, said Yan Qingmin, vice president of China Securities Regulatory Commission, recently.
Although there are still technical barriers before such companies’ listing in the Chinese mainland, the country’s financial regulators said they will prioritize reform of listing rules this year in support of new economy companies and that CDR is a feasible way to achieve it, Wang added.
China's Two Sessions will come to an end tomorrow.