China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China Issues Rules on Depository Receipts under the Stock Connect Scheme

Mon, 14 Mar 2022
Categories: China Legal Trends

The Provisions allows companies listed on the Shenzhen Stock Exchange (SZSE) or the Shanghai Stock Exchange (SSE) to issue global depository receipts (GDRs) and list them on stock exchanges in the UK, Switzerland, Germany, and other countries.

On 11 Feb. 2022, China Securities Regulatory Commission (CSRC) amended the “Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Shanghai Stock Exchange and London Stock Exchange (for Trial Implementation)” (No. 30 [2018] of CSRC) (hereinafter “the Provisions for Trial”, 关于上海证券交易所与伦敦证券交易所互联互通存托凭证业务的监管规定(试行)) and changed its name into the “Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Domestic and Overseas Stock Exchanges” (hereinafter “the Provisions”, 境内外证券交易所互联互通存托凭证业务监管规定), which came into effect immediately on the day of issuance.

Prior to the Provisions, China issued the Provisions for Trial in 2018, which established the Shanghai-London Stock Connect scheme, allowing the interconnection between the SSE and the London Stock Exchange (LSE). Qualified companies from either market could issue depositary receipts (DR) and list them on the other market.

Through the Shanghai-London Stock Connect scheme, several Chinese companies succeeded to issue GDRs on LSE including Huatai Securities Co., Ltd., China Pacific Insurance (Group) Co., Ltd., China Yangtze Power Co., Ltd, SDIC Power Holdings Co.

According to the Provisions in 2022, on the domestic front, qualified companies listed on the SZSE, in addition to the SSE, are also allowed to apply for the issuance of GDRs in overseas markets, which are further expanded from the UK to Switzerland and Germany, once recognized by the CSRC.

 

 

Cover Photo by Yiran Ding on Unsplash

 

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.