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 ArticleBCBS Updates FAQs on the Basel III Standard on SA-CCR
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.