The Hongkong Shanghai Banking Corporation Limitted (HSBC) is studying regulations for issuing CDR under the Shanghai-London Stock Connect, the Shanghai Securities News quoted the bank's spokesperson as saying Friday.
It is the bank's response to the market rurmor saying that HSBC could become the first foreign listed company to issue Chinese Depositary Receipt (CDR) under the new stock exchange link between Shanghai and London.
The Shanghai-London Stock Connect could link the London Stock Exchange (LSE) with the Shanghai Stock Exchange, allowing international investors to access shares in Chinese companies and for Chinese investors to buy stocks listed on the LSE.
Earlier, it's said that the Shanghai-London Stock Connect is expected to start trading within this year.
Shanghai Stock Exchange has issued requirements for listing of CDR, including the total market value (20 billion yuan), the listing period on the LSE (3 years and premium listing on the main market for 1 year), and the initial scale (50 million shares of CDRs with more than 500 million yuan in market value).
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