According to Caixin News, March 21, according to the Caixin Report, several market participants recently stated that Alibaba and Jingdong will become the first batch of CDR pilot companies. Alibaba and JD.com have already established sponsor agencies for the domestic issuance of CDRs, among which Alibaba The sponsor institution was CITIC Securities. Some market players close to Ali pointed out that due to the large scale of Alibaba's CDR issuances, it is not ruled out that it will select another joint sponsor institution. CICC said that it is actively fighting for it. The sponsor of the Jingdong CDR issuance is It is Huasheng Securities, China Securities Investment Corporation, and Huatai Alliance as financial advisors.
According to the Wall Street Journal, Alibaba.com will be listed twice in China this summer as soon as possible. Another media said Jingdong is also in the first batch. Just recently Tencent Holdings CEO Ma Huateng said at the performance meeting that if the conditions are more mature, they will also consider CDR. Forms listed in the Mainland.
Xinhua News Agency: CDR is expected to promote China's capital market to accelerate maturity
Recently, many Chinese economic buzzwords including the China Depositary Receipt (CDR) have become the focus of attention. Analysts pointed out that if the CDR can be formally implemented, it will promote Chinese investors, listed companies, Chinese stock market and even Chinese economy. The role is expected to promote the rapid transformation of China's capital market to maturity.
It is understood that related to this matter, 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 stock market is the stage, and the actors are the most important,' said the Yellow River’s co-founder, Wright Street Capital, a professor at the Business School of Yehiva University in the United States. If a good company can return to China, it will be the same with investors, consumers, markets, and the economy. Breathing, sharing fate, will have a very good boost in all aspects.
'This is like an excellent 'turtle' for the entire industry or the entire field of positive driving role, (excellent companies return to A shares) can put the country in this piece of philosophy, management, system, etc. are brought up. 'The Yellow River said.
Brendan Ahern, chief investment officer of U.S. Gold River Fund, said that the innovation of the CDR system is reasonable and feasible, and that hundreds of millions of Chinese consumers and internet users will have the opportunity to share growth opportunities in these companies and related fields.
Zhang Jun, Managing Director of Rosenblatt Securities, China, said that in recent years, China has emerged a number of outstanding new-economy companies including Internet companies, but most of them went overseas. 'Excellent China' Once tech companies return to A-shares through CDR, they will have important landmark 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, the CDR operation will be mature, and it will also attract outstanding foreign companies to list on China A-shares, further enhancing the vitality and attractiveness of the Chinese capital market.
However, experts also reminded that as a new thing, the CDR also faces many challenges. The Yellow River said that there are big differences between the US-China securities market accounting standards, information disclosure requirements, regulatory standards, investor structure and concepts, etc. In U.S. unicorn enterprises’ return to A-shares, China may need to make some adjustments in laws, management, and supervision.
Ahern believes that China is currently one of the most important participants in the international economic arena. During the implementation of the CDR, care should be taken to take care of the interests of international investors. Ahern suggested that the operation of American depository receipts is more mature and China is promoting the CDR. The process can learn from the United States experience.
Fortunately, in recent years, there have been many positive changes in China's capital market, which has laid a good foundation for the smooth implementation of CDR. Zhang Jun said that under the guidance of strong regulatory measures such as anti-speculation measures, China’s A-share institutional mechanisms have become increasingly sound. The behavior of individual investors becomes more rational, and the concept of value investment is 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, cultivating 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.