Xinhua News Agency, New York, March 20: Financial Review: CDR is expected to promote China's capital market to accelerate its maturation
Xinhua News Agency reporter Wang Naishui
Recently, many Chinese economic words including China Depositary Receipts (CDRs) have become the focus of attention. Analysts pointed out that if the CDR can be formally implemented, it will have a catalytic effect on Chinese investors, listed companies, China's stock market and even China's economy, and it is expected to promote the accelerated transformation of China's capital market to maturity.
It is understood that related to this, Baidu, Tencent, Jingdong and other new economic enterprises listed in the United States have expressed their interest and willingness to return to China A shares.
"The securities market is the stage, and the actor is the most important," said the Yellow River, a professor at the University of Yehiva Business School in the United States and a co-founder of Wall Street Venture Capital. The outstanding companies can return to China, with investors, consumers, and the market. The same breath and common destiny of the economy will have a very good boosting effect on all aspects.
"This is like an excellent "sea turtle" rss; positive effect on the entire industry or the entire field, (excellent companies return to A shares) can take the country in this piece of philosophy, management, system, etc. are brought up. "The Yellow River said.
U.S. Gold Fund's chief investment officer Brendan · Ahern said that the CDR system innovation is reasonable and feasible, and that hundreds of millions of Chinese consumers and Internet users will have the opportunity to share the growth opportunities in these companies and related fields.
Zhang Jun, managing director of China's Rosenblatt Securities and head of research in China, said that in recent years, a number of outstanding new economic enterprises including Internet companies have emerged in China, but most of them are listed overseas. "Excellent Once China's technology companies return to A-shares through CDR, they will have important symbolic significance, indicating that the future development of China's capital market will be more in line with the domestic economic structure.
The Yellow River said that in the future, CDR operations will be mature, and it will also attract outstanding foreign companies to list on China A-shares and further increase the vitality and attractiveness of China's capital market.
However, experts also reminded that as a new thing, CDR also faces many challenges. The Yellow River stated that there are major differences in accounting standards, information disclosure requirements, regulatory standards, investor structures, and concepts among the US and China securities markets. We must allow US unicorn enterprises to return to A-shares. China is in law, management, and supervision. Some adjustments may need to be made.
Ahern believes that China is currently one of the most important players in the international economic arena. During the implementation of the CDR, it should pay attention to the interests of international investors. Ahern suggested that the operation of ADRs is relatively mature and China can learn from the United States in implementing the CDR process.
Fortunately, there have been many positive changes in the Chinese capital market in recent years, which laid a good foundation for the smooth implementation of the CDR. Zhang Jun said that under the guidance of strong regulatory measures such as crackdown on speculation, China’s A-share institutional mechanisms have been increasingly perfected, institutional and individual investor behaviors have become more rational, and ideas such as value investment are being recognized by more and more investors.
Ahern believes that China A-shares will be officially included in the MSCI Emerging Markets and Global Benchmark Index in June, which will have an important and positive impact on the development of China's securities and capital markets.
The Yellow River said that what is more worth looking forward to in the future is that by perfecting the system, nurturing and improving the financing environment in China, and raising the level of China’s capital market, a group of outstanding emerging companies can remain in China’s domestic market.
Alibaba and JD are the fastest in June. Back to A” Release CDR
Recently, many market participants stated that Alibaba and Jingdong will become the first batch of CDR pilot companies. Alibaba and JD.com have already established sponsors for the domestic issuance of CDRs, of which Alibaba's sponsor is Citic Securities.
There are also market participants close to Ali pointed out that due to the large scale of Alibaba's CDR issuance, it is not ruled out that another joint sponsor institution will be selected. China Gold said it is actively fighting for it.
JD’s sponsored CDRs are Huasheng Securities and CSC Securities, while Huatai and Taihai acted as financial advisors.
Ma Huateng: If the conditions are more mature, they will consider listing in the form of CDR in the Mainland
On the afternoon of March 21st, Chairman and Chief Executive Officer of Tencent Ma Huateng stated at the press conference of the annual results that if conditions are more mature, they will also consider listing in the form of CDRs in the Mainland.
Previously, it was reported that the supervisory authorities had recently been studying with the market institutions to undertake the possibility of returning domestic stocks with high quality overseas listings such as BATJ to the domestic capital market with the CDR system.