China releases depositary receipt rules for Shanghai-London stock connect

BEIJING - The China Securities Regulatory Commission (CSRC) on Friday issued trial rules on depositary receipt business in the Shanghai-London stock connect program after seeking public comment for more than a month.

The rules mark an important step for the program, which aims to allow stocks listed in Shanghai and London to be traded in each other's market by issuing depository receipts.

The CSRC revised some items in the previous version, including the restricted redemption period for domestic companies issuing Global Depositary Receipts (GDRs) and the rights issue of overseas companies after their China Depositary Receipts (CDRs) offering.

Effective upon release, the rules detailed procedures and requirements for the CDRs and GDRs issuances, such as the approval system, continued regulation and law enforcement.

China will make active preparations for launching the Shanghai-London stock connect program and steadily push forward the opening-up in China's capital market, the CSRC said.