Recently, there have been a number of reports that the China Securities Regulatory Commission (the “CSRC”) will embrace “new economy” companies to return to China’s capital markets, such those engaged in new technologies, new industries, and new business operations and models. The CSRC also plans to allow certain companies with offshore structures to achieve onshore listings through the issuance of Chinese Depositary Receipts (“CDRs”). This has caused CDRs, a once popular concept, to return to the spotlight and attract the widespread attention of market players. In this article, we will briefly analyze the CDR system based upon the basic principles of depositary receipts, relevant CDR legal systems and practices in China, as well as widely reported circumstances surrounding new economy companies that may return to the domestic market.
