China Patches Up Loopholes in GDR Issuance

What’s new: China’s stock exchanges patched up loopholes listings of global depositary receipts (GDRs) to prevent shareholders from lending their domestically listed shares to brokerages in the offering.

The Shanghai and Shenzhen bourses revised their GDR rules based on guidelines published by the China Securities Regulatory Commission (CSRC) in May. They require companies to register with the CSRC within three working days after submitting applications abroad to sell GDRs and disclose the identities of subscribers of their GDRs within 15 working days of the sale.