China allows domestic fundraising for overseas-listed firms

China allows domestic fundraising for overseas-listed firms

SHANGHAI (Reuters) - China has adopted new rules governing the issuance of securities that will allow the domestic flotation of overseas-listed innovators, the China Securities Regulatory Commission said in a notice published late on Wednesday.

China is encouraging overseas-listed Chinese companies to launch secondary listings in the domestic market through the issuance of China Depositary Receipts (CDRs), modelled on the popular ADRs used in the United States.

The trial rules, which are effective immediately, will provide the "institutional foundation" for innovative companies to issue CDRs on the domestic market, the China Securities Regulatory Commission said.

The CSRC statement said the programme would support innovative companies that comply with "national strategies" and have "mastered key technologies".

The regulator said it has set strict selection criteria and would strictly control the size, timing and pace of CDR issuance.

The CSRC approved the launch of six Chinese mutual funds on Wednesday, which would be allowed to become "strategic investors" in the upcoming listing of high-tech firms.

The pilot programme would allow domestic investors access to tech giants such as Alibaba and Baidu , which are listed in the United States, state news agency Xinhua said.

(Reporting by David Stanway and Samuel Shen; Editing by Stephen Coates and Eric Meijer)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Jun 07, 2018 07:05 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See