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Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity

Research output: Contribution to journalArticle

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Chinese Depositary Receipts : What They Are, How They Work and Why This Represents a Golden Opportunity. / Lu, Lerong.

In: BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW, Vol. 33, No. 8, 01.09.2018, p. 529-532.

Research output: Contribution to journalArticle

Harvard

Lu, L 2018, 'Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity', BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW, vol. 33, no. 8, pp. 529-532.

APA

Lu, L. (2018). Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity. BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW, 33(8), 529-532.

Vancouver

Lu L. Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity. BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW. 2018 Sep 1;33(8):529-532.

Author

Lu, Lerong. / Chinese Depositary Receipts : What They Are, How They Work and Why This Represents a Golden Opportunity. In: BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW. 2018 ; Vol. 33, No. 8. pp. 529-532.

Bibtex Download

@article{41ba88fd9a8b40ebb12efcfe74c2d94b,
title = "Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity",
abstract = "In this article the authors analyse the reform of listing rules in China and the operating mechanism of the new Chinese Depositary Receipts (CDRs). Most technology giants in mainland China, such as Alibaba, Tencent, Baidu, JD and NetEase have listed their shares on overseas stock markets such as Hong Kong and New York, in order to avoid China{\textquoteright}s rigid and onerous listing rules concerning foreign ownership, variable interest entities, weighted voting rights and the strict profitability requirement. Recently, the China Securities Regulatory Commission has launched a pilot project to allow certain foreign-listed Chinese companies to issue CDRs which can be traded in the Shanghai and Shenzhen stock exchanges. Technically speaking, CDRs are not shares but they represent equity interests in foreign companies through an offshore custodian bank. Clearly, the popularisation of CDRs will benefit several parties. Chinese investors will be able to purchase interests in some of the top tech companies in the world. It will also lure international capital to the Chinese market and boost the valuation of issuing companies. The market scale of CDRs is estimated to be over $1 trillion, which will be a source of income for investment banks and international law firms.",
keywords = "Chinese Depositary Receipt, CDR, China, Chinese economy, Securities Regulation, Financial Law, Listing Rule, Stock Market, Capital Market, Xiaomi, Alibaba, Tencent, Baidu, Unicorn",
author = "Lerong Lu",
year = "2018",
month = sep,
day = "1",
language = "English",
volume = "33",
pages = "529--532",
journal = "BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW",
issn = "0269-2694",
number = "8",

}

RIS (suitable for import to EndNote) Download

TY - JOUR

T1 - Chinese Depositary Receipts

T2 - What They Are, How They Work and Why This Represents a Golden Opportunity

AU - Lu, Lerong

PY - 2018/9/1

Y1 - 2018/9/1

N2 - In this article the authors analyse the reform of listing rules in China and the operating mechanism of the new Chinese Depositary Receipts (CDRs). Most technology giants in mainland China, such as Alibaba, Tencent, Baidu, JD and NetEase have listed their shares on overseas stock markets such as Hong Kong and New York, in order to avoid China’s rigid and onerous listing rules concerning foreign ownership, variable interest entities, weighted voting rights and the strict profitability requirement. Recently, the China Securities Regulatory Commission has launched a pilot project to allow certain foreign-listed Chinese companies to issue CDRs which can be traded in the Shanghai and Shenzhen stock exchanges. Technically speaking, CDRs are not shares but they represent equity interests in foreign companies through an offshore custodian bank. Clearly, the popularisation of CDRs will benefit several parties. Chinese investors will be able to purchase interests in some of the top tech companies in the world. It will also lure international capital to the Chinese market and boost the valuation of issuing companies. The market scale of CDRs is estimated to be over $1 trillion, which will be a source of income for investment banks and international law firms.

AB - In this article the authors analyse the reform of listing rules in China and the operating mechanism of the new Chinese Depositary Receipts (CDRs). Most technology giants in mainland China, such as Alibaba, Tencent, Baidu, JD and NetEase have listed their shares on overseas stock markets such as Hong Kong and New York, in order to avoid China’s rigid and onerous listing rules concerning foreign ownership, variable interest entities, weighted voting rights and the strict profitability requirement. Recently, the China Securities Regulatory Commission has launched a pilot project to allow certain foreign-listed Chinese companies to issue CDRs which can be traded in the Shanghai and Shenzhen stock exchanges. Technically speaking, CDRs are not shares but they represent equity interests in foreign companies through an offshore custodian bank. Clearly, the popularisation of CDRs will benefit several parties. Chinese investors will be able to purchase interests in some of the top tech companies in the world. It will also lure international capital to the Chinese market and boost the valuation of issuing companies. The market scale of CDRs is estimated to be over $1 trillion, which will be a source of income for investment banks and international law firms.

KW - Chinese Depositary Receipt

KW - CDR

KW - China

KW - Chinese economy

KW - Securities Regulation

KW - Financial Law

KW - Listing Rule

KW - Stock Market

KW - Capital Market

KW - Xiaomi

KW - Alibaba

KW - Tencent

KW - Baidu

KW - Unicorn

M3 - Article

VL - 33

SP - 529

EP - 532

JO - BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW

JF - BUTTERWORTHS JOURNAL OF INTERNATIONAL BANKING AND FINANCIAL LAW

SN - 0269-2694

IS - 8

ER -

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