China seeks public comments on draft CDR rules

BEIJING — China's securities regulator has issued draft rules on the issuance and trading of China Depositary Receipts (CDRs) for public comments.

A China Securities Regulatory Commission (CSRC) online statement on May 4 revealed the draft rules on CDRs, with detailed procedures and information disclosure requirements.

The draft rules lay the institutional foundation for innovative firms to return to the domestic capital markets via the issuance of CDRs, while creating conditions for the launch of the Shanghai-London stock connect program.

The public have until June 3 to comment on the draft rules.

The CDR program will allow domestic investors access to tech giants such as Alibaba and Baidu, currently listed in the United States.