(ECNS) - Wang Jianjun, general manager of Shenzhen Stock Exchange, said on Sunday that additional rules will be introduced in mid-June on the issuing of China Depository Receipts (CDRs).
China aims to encourage overseas-listed Chinese companies to launch domestic listings through CDRs, with China Securities Regulatory Commission (CSRC) issuing draft rules on the issuance and trading of CDRs for public comments last week.
Under CSRC leadership, Shenzhen Stock Exchange has conducted full research and preparatory work in advance, completing a support system with technical solutions to be rolled out soon, Wang said.
Efforts will be made to construct a multi-level market system and implement differentiated and diversified conditions for CDR issuance and listing, providing a stable and reliable investment and financing environment for science startups, it was added.
While CSRC officials said the CDR program will help economic restructuring, securities analysts say the current effort mainly provides an institutional foundation and will have limited impact on China’s A-shares, or shares of companies based on the Chinese mainland and traded within the country.
The CSRC statement said it has set selection criteria and will strictly control the size, timing and pace of CDR issuance.
