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Economy

Draft rules on CDRs issued for public comments

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2018-05-22 15:45 Editor: Li Yan ECNS App Download

China Depositary Receipts closes to market as a draft rules on registration and clearing business for public comments has been issued on Monday.

The draft rules have been released on China Securities Depository and Clearing Corporation, or CSDC website, with specific focus on CDRs registration, depository and clearing operations.

The public can comment on the draft rules till June 1.

Baidu, China's search giant, expects to become the first company to return to A-share market via the CDRs next month, National Business Daily reported on Tuesday.

Currently, the tech firm lists on NASDAQ in New York.

According to the detailed regulations, investors should have securities accounts on A-share market to buy and trade CDRs, as well as deposit all their CDRs at CSDC.

The CSDC will provide an electronic system to the investor for registration based on the investor's securities accounts record.

The applicants, including CDRs custodians, holders and other applicants confirmed by CSDC, should declare their requirements to the CSDC, and the institution will have power to approve eligible CDRs applicants.

Moreover, the CDRs custodians should file initial registration documents to the CSDC, and complete registration within schedule time, as well as sign service agreements with the institution before the initial registration.

The CSDC is temporarily not accepting pledged registration business of the CDRs, according to the draft rules.

The draft said the CSDC will use renminbi as the CDRs settlement currency, and carry out classification system to clearing.

The draft's content also involves the depository receipt issuing on overseas markets.

  

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