On 16 May 2023, China Securities Regulatory Commission issued Guidelines No. 6 for Overseas Issuance of Global Depositary Receipts (“GDRs”) by Domestic Listed Companies.
As a further step, on 2 June 2023, the Shanghai and Shenzhen bourses issued the Interim Measures for the Listing and Trading of Depositary Receipts under the Stock Connect Scheme between the Shanghai Stock Exchange/Shenzhen Stock Exchange and Overseas Stock Exchanges (2023 Revision) for public consultation respectively.
This new regulatory framework covers the positioning of GDRs, application and filing procedures, requirements for underwriting and sponsoring, use of proceeds monitoring, issuer’s qualification requirements, and information disclosures for GDR offerings and listings. The net effect is to bring the requirements of a GDR offering, from a PRC regulatory perspective, closer to those for an A-share private placement in the PRC, which will significantly impact GDR offering and listing timetables.
For further information, please contact:
Eric Liu, Partner, Linklaters
eric.liu@linklaterszs.com
