Photo taken on June 17, 2019 shows an electronic display with Shanghai-London Stock Connect information at London Stock Exchange in London, Britain. (Xinhua/Han Yan)
BEIJING, July 19 (Xinhua) -- China's Shanghai and Shenzhen bourses unveiled on Tuesday interim rules over depository receipts under the Stock Connect schemes to optimize in particular global depository receipts (GDR) related rules and operating mechanisms, reported Xinhua-run Shanghai Securities News.
The rules, which both came into effect on July 18, mainly provide requirements for listing and review arrangement of listing applications of shares underlying the GDRs issued by companies listed on the two stock exchanges and tighten full-process information disclosure requirements.
Listed companies on Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) which issue GDRs abroad and apply for listing of the underlying stocks on SSE and SZSE shall meet related requirements, have gone public for one year and possess average A-share market capitalization of no less than 20 billion yuan in the 120 trading days before their application dates for listing of shares underlying their GDRs.
As the rules tell, the listing review organs of SSE and SZSE are responsible for review of the listing application of GDR underlying stocks and related provisions on securities issuance to specific targets by listed companies are applicable to the listing review procedures and mechanisms.
SSE- and SZSE-listed companies which issue GDRs abroad shall timely disclose progresses at important timings when review results made by overseas competent authorities come out, record filing with China Securities Regulatory Commission (CSRC) completes, GDRs get listed overseas, proceeds go into their accounts, or their GDRs issuance is suspended or terminated.
On May 16, CSRC released rules to put issuance of shares underlying the GDRs of listed companies at home under management of comprehensive registration-based stock issuance and required bourses to examine the underlying shares issuance by taking reference from procedures of listed companies’ share issuance to specific targets.
For SSE- and SZSE-listed companies which have submitted applications for GDR issues abroad before March 31, 2023 but have not obtained approval from CSRC, they shall submit to the two bourses applications for issuance and listing of underlying stocks of GDRs in accordance with the interim rules. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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