简体中文
China announced Friday a pilot program to support innovative companies' domestic listing and issuance of China Depositary Receipts (CDRs), a mechanism that will facilitate Chinese companies listed overseas to return to China's A-share market.
Under the CDR system, part of a company’s shares are transferred to a custodian bank, which sells them on an exchange abroad.
The pilot scheme will cover companies in high-tech or strategic emerging industries such as Internet, big data, cloud computing, artificial intelligence, software and integrated circuit, as well as high-end equipment manufacturing and biological medicine, according to a document from the China Securities Regulatory Commission (CSRC).
The program will apply to firms that are listed overseas but operate on the Chinese mainland with a market value of no less than 200 billion yuan (about 31.7 billion US dollars), according to the document.
For innovative companies who have not listed overseas, they will be the program candidates if they have posted a business income of at least three billion yuan for the past year and are valued at 20 billion yuan or above.
Innovative companies which have not listed overseas and do not fulfill the business income and valuation requirements, will be on the candidate list if their business income registers fast expansion and they have developed independent and advanced technologies.
A consultation committee will be set up under the CSRC to select the pilot companies.
(ASIA PACIFIC DAILY)
