FINANCE & BANKING

China Allows Domestic Flotation of Overseas-Listed Firms

New rules for the issuance of securities that will allow the domestic flotation of overseas-listed innovators are effective immediately, the China Securities Regulatory Commission said in a notice on Wednesday.

China aims to attract overseas-listed Chinese firms to launch secondary listings in the domestic market through the issuance of China Depositary Receipts (CDRs), which is modeled on the ADRs in the US.

The CSRC said  that it has set strict selection criteria and would strictly control the size, timing and pace of CDR issuance, adding it would support innovative firms that comply with "national strategies" and have "mastered key technologies”.

The pilot program would allow domestic investors access to leading technology firms such as Alibaba and Baidu, which are listed in the US.

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