CSRC issued draft rules on the issuance and trading of China Depository Receipts. The regulatory requirements and the basic rights and obligations of the participating entities provide an institutional basis for the innovative enterprises to return to the domestic capital market through the issuance of depository receipts. CSRC is soliciting comments on the draft rules.
The draft rules aim to:
- Clarify the legal application and basic supervision principles of depository receipts
- Address arrangements for the issuance, listing, and trading of depository receipts
- Clarify the information disclosure requirements for depository receipts
- Establish depository trust depository and trusteeship system by stipulating the depository trustee, custodian, and their responsibilities
- Strengthen investor protection
- Strengthen supervision and law enforcement and clarify legal responsibilities
It is stipulated that the issuer of overseas basic securities, its controlling shareholder, and actual controller are the main parties responsible for information disclosure. While stipulating the principle of disclosure of depository receipts information, the "Securities Law" and "Information Disclosure Management Practices for Listed Companies" and other information disclosure requirements of listed companies are applied. CSRC can take measures such as on-site inspections, investigations, and evidence collection of relevant participants to enrich the supervisory measures of the Securities and Futures Commission regarding violations of laws and regulations. The rule provides that CSRC can take orders for rectification and issue warning letters.
Related Link (in Chinese): CSRC Notice
Keywords: Asia Pacific, China, Securities, Depository Receipts, Investor Protection, Disclosure Requirements, CSRC
Previous ArticleAPRA Publishes List of D2A Validation Rules for Banks and Insurers
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).