The deputy head of the China Securities Regulatory Commission has confirmed that Chinese depository receipts (CDR) are on track for launch in the near future.
Yan Qingmin (阎庆民) made the remarks on 15 March at the sidelines of the meeting of China’s two legislative bodies in Beijing.
According to Yan CDR will “very soon be released,” and are an effective measure for enabling Chinese enterprises listed overseas to return to the domestic A-share market.
With regard to the identification of “unicorn” enterprises, Yan Qingmin said that this will involve joint selection by multiple commissions and departments, including China’s Ministry of Science and Technology and the Ministry of Industry and Information Technology.
CDR’s are certificates issued by Chinese banks that are traded on local exchanges, and serve to represent a pool of foreign equity.
The instruments provides institutional and retail investors in China with a channel for acquiring equity stakes in companies listed overseas.