New rules pave way for launch of CDRs

Regulator details requirements and qualifications for issuing companies

China's securities regulator has issued draft rules on the issuance and trading of Chinese Depository Receipts, paving the way for the eventual launch of the program that will allow overseas-listed innovative Chinese companies to float shares on the domestic stock market.

The rules, released on Friday by the China Securities Regulatory Commission, set out detailed requirements and qualifications for companies to issue CDRs, an arrangement that will enable overseas-listed companies to transfer part of their holdings to a custodian bank and sell them on a mainland exchange board.