Featured Product

    CSRC and CBIRC Issue Rules Governing the Chinese Depository Receipts

    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 Articles
    News

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    BIS Survey Examines Progress of Central Banks Toward Digital Currency

    BIS published a paper that presents the results of a survey that asked central banks how their plans are developing in the area of central bank digital currency (CBDC).

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4541