Depository receipts will inject fresh vitality into A-share market
THE CHINA SECURITIES REGULATORY COMMISSION recently approved Xiaomi Group, an electronics manufacturer headquartered in Beijing and the world's fourth-largest smartphone producer, to issue shares in form of depository receipts, the first enterprise to do so in China's A-share market. Beijing News comments:
The China Securities Regulatory Commission has implemented a series of new regulations recently, encouraging qualified innovative enterprises to issue depository receipts, which are negotiable financial instruments issued by a bank to represent a company's securities. It facilitates buying shares of companies listed in overseas stock markets.
The depository receipts provide a fast track for overseas-listed Chinese companies, especially the giants in the IT industry, to issue securities in China's A-share market.
