Caixin Global – Latest China News & Headlines

Home >


CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

Costco Set to Open First China Store
Hong Kong Billionaire to Pay Tuition for Every Undergrad at Mainland University for Four Years
Huawei Warns Trump's Ban Might Wipe Out $30 Billion of Sales Growth
Warning System Gives Heads-Up on Monday’s Deadly Sichuan Earthquake
Alibaba Makes Major Changes to Culture and Entertainment Unit Amid IPO Rumors
Illicit Drugs From Overseas on Rise, China Says
Taiwan's TPK Withdraws From Bailout of Troubled Japanese Apple Screen Supplier
Sichuan Earthquake Death Toll Rises to 12
Google Appoints New Chief to Oversee China Region
Bank of East Asia to Increase Mainland Capital After Profit Warning
China's Fosun Mulls Joint Bid for Bayer Animal Health Arm
China Launches EV Safety Inspection After Tesla and Nio Fires
China to Put H-Share Full Convertibility Into Effect Soon
Xi to Pay State Visit to North Korea
China, U.K. Launch Stock Connect Program
Huawei Warns Trump's Ban Might Wipe Out $30 Billion of Sales Growth
SOEs Turn to Jack Ma for Digital Innovation
Hong Kong Billionaire to Pay Tuition for Every Undergrad at Mainland University for Four Years
China’s Regulators Moving to Restructure Troubled Baoshang
Costco Set to Open First China Store
Gree’s Stake Sale Attracts 25 Keen Investors
In Depth: China Races Early Into the 5G Era
Retired Shandong Securities Regulator Put Under Probe
China Sets Rules for CDR Trading on New High-Tech Board

By Peng Qinqin and Han Wei / May 28, 2019 05:21 AM / Finance

Photo: VCG

Photo: VCG

China’s central bank and foreign exchange regulator laid the groundwork for trading of China depositary receipts (CDRs) on the coming new high-tech board by issuing new rules on cross-border capital management for the securities, analysts said.

The new rules, jointly issued by the People’s Bank of China and the State Administration of Foreign Exchange, encourage the use of the yuan in cross-border payments for business involving depositary receipts. A depositary receipt is a certificate issued by a bank that represents equity in a foreign company.

Foreign issuers will be allowed to decide whether to keep proceeds raised by CDR issuance in China or send the funds abroad, according to the new regulations. Analysts said the new rules clear away regulatory hurdles for offshore-registered Chinese companies to list on the new high-tech board through issuance of CDRs.

According to rules released in February for the high-tech board, red-chip firms — mainland companies listed in Hong Kong which have structures similar to the variable-interest entity (VIE) — can list on the high-tech board by issuing CDRs.

China is making the final preparations for trading on the high-tech board as more than 100 companies are under review for potential listing.

The Shanghai Stock Exchange, the operator of the new board, is set to decide on the first three applicants on June 5. If approved, the companies will undergo a final review by the securities regulator in 20 days.

Related: Five Things to Know About China’s New High-Tech Board

Share this article
Open WeChat and scan the QR code
Copyright © 2019 Caixin Global Limited. All Rights Reserved.