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CSRC Releases Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Domestic and Overseas Stock Exchanges

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To facilitate cross-border investment and financing, promote the global allocation of production resources, and advance the institutional opening-up of the capital markets, the CSRC has revised the Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect between Shanghai Stock Exchange and London Stock Exchange (for trial implementation) (CSRC Announcement [2018] No.30, hereinafter referred as the “orginial Provisions), whose name is now changed to the Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Domestic and Overseas Stock Exchange(hereinafter referred as the “revised Provisions)The provisions shall enter into force as of the date of promulgation.

    The revision of the orginial Provisions includes the following aspects: (1) Expand the programme to cover eligible listed companies on Shenzhen Stock Exchange on the domestic side, and eligible listed companies in Switzerland and Germany on the overseas side. (2) Allow overseas issuers to raise capital in the domestic market through CDR offerings and adopt a market-driven book-building mechanism. (3) Optimize ongoing supervision by making improved and more flexible supervisory arrangement for information disclosure, including annual reports and the disclosure on equity change.

    The CSRC publicly solicited comments on the revised Provisions from December 17, 2021 to January 16, 2022, analyzed these suggestions and incorporated them into the revised Provisions. Market participants respond positively to the expansion and the optimization of the stock connect scheme. Expanding and optimizing the stock connect scheme between domestic and overseas capital markets is a pragmatic measure to advance the institutional opening-up, which is conducive to broadening channels for two-way cross-border financing, supporting companies to utilize both domestic and international markets and resources in compliance with laws and regulations, improving the ability of Chinese capital market to serve the real economy and international competitiveness, and providing more investment choices for investors domestic and abroad.

    In the next step, the CSRC, together with Shanghai Stock Exchange and Shenzhen Stock Exchange, will provide competent supervision and services for the expanded depository receipts businesses under the stock connect scheme between domestic and overseas stock exchanges so as to promote the high-quality development of the real economy through high-level opening up.

    CSRC Announcement [2022] No.28

This news item was originally published by the China Securities Regulatory Commission (CSRC CN). For more information, please see the Source Link.

Regulator Information

Abbreviation: CSRC
Jurisdiction: China

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