(MENAFN- Asia Times) China will launch its China Depositary Receipt soon, said Yan Qingmin, deputy chairman of China Securities Regulatory Commission, as it aims to resolve issues such as cross-border supervision, which will make it convenient for firms listed or delisted overseas to come back to the A-share market, The Paper reported.
A depositary receipt is a type of transferable financial security that is traded on a local stock exchange but represents a security, usually in the form of equity, that is issued by a foreign publicly listed company.
In the global depositary receipts market, the proportion of American Depositary Receipts is the highest. China's Internet giants, such as Alibaba, Baidu, and JD.com, have all chosen to issue shares on the US stock market through depositary receipts.
The Shanghai Stock Exchange, which has been working on the China Depositary Receipts, has sorted out the rules for the listing and trading of high-quality and innovative companies.
The CDR will be given to a batch of new economy enterprises, or unicorn companies when it launches, Yan added.
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