China Restarts GDR Approvals With New Rules on Registration
- Companies have to disclose subscriber identities in reports
- CSRC earlier paused new GDR approvals on arbitrage concerns
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China’s securities regulator has announced new rules on global depositary receipts, paving the way for the resumption of a steady stream of listings in Europe.
Companies must register with the China Securities Regulatory Commission within three working days after submitting GDR listing applications overseas, according to new guidelines published late Tuesday. Any fundraising size should be reasonable, it said, without giving details, while pricing and lockup period for investors have to be in line with regulations. The regulator also requires companies to disclose the identities of the subscribers in their GDR issue as part of a report that has to be submitted within 15 working days of the sale.