Hong Kong on the back foot as China preps launch of depository receipts

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By Jonathan Breen
22 Mar 2018

China’s promotion of a home-grown depository receipt market is already gaining traction, even before the rules around it are published, with the big four technology giants showing their interest in returning home. But while China Depository Receipts (CDRs) will put pressure on the Hong Kong exchange, it will be some time before they pose a serious threat, writes Jonathan Breen.

CDRs are targeted at local companies listed offshore, mainly in the US, giving them a fast track to come home to raise capital. In line with depository receipts elsewhere, each CDR will represent a certain amount of a company’s offshore-listed stock. They will be listed on a Chinese ...

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