General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 15, 2018

CSRC and CBIRC jointly issued provisions on matters related to "Commercial Banks Serving as Trial Custodians," along with other regulatory documents governing the Chinese Depository Receipts (CDRs). The provisions are intended to support innovative companies in issuing stocks or depository receipts and further improve the relevant supporting systems for pilot work. The accompanying measures include "Measures for the Administration of Securities Issuance and Underwriting," "Implementation Measures for the Continued Supervision after the Listing of Domestically Issued Shares or Depository Receipts of Innovative Enterprises (Trial Implementation)," and "The Guidelines on the Content and Format of the Document Depository Agreement (Trial); these measures shall be implemented as of the date of promulgation.

The following are the key highlights of the new rules:

  • The provisions on matters relevant to the role of commercial banks as Depository Trust depositors clearly define the qualification conditions, approval procedures, and ongoing supervision requirements of commercial banks as depositories.
  • The revised administrative measures include the depository receipts in the scope of application, specify that the calculation of the market value subscription includes depository receipts, and allow enterprises with an issue size of less than 20 million shares to determine the issuance price through inquiry and improve the callback mechanism.
  • Implementation measures cover corporate governance, information disclosure, acquisition of shares and changes in equity, assets reorganization of regulatory requirements and incentive, cash dividends of information disclosure, and other aspects to make the necessary arrangements while considering the innovative pilot enterprises and the special nature of domestic listed companies. The general regulatory requirements also reflect the principles of classification and supervision for different types of innovative companies.
  • The guidelines on the content and format of the depository agreement aim to protect the legitimate rights and interests of holders of depository receipts. They mainly regulate the formulation of depository agreements and define the rights and obligations of the underlying issuers, holders of depository receipts, and depositories.

In the next step, to ensure the steady progress of the pilot work, entities, such as the Shanghai-Shenzhen Exchange and China Clearing, will also gradually introduce supporting rules for the provision of standardized guidelines for pilot innovative enterprises and related parties. CDRs permit Chinese investors to obtain equity stakes in enterprises listed on the overseas exchanges.


Related Link (in Chinese): Notification

Effective Date: June 15, 2018

Keywords: Asia Pacific, China, Banking, Securities, Depository Receipts, CSRC, CBIRC

Related Insights

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473