Securities dealers in China are eager for opportunities from the newly piloted Chinese Depository Receipt (CDR).
Last Friday, China gave a green light for the pilot issuance of CDRs, a move expected to help overseas-listed Chinese technology unicorns trade shares in the domestic stock market.
This pilot program lifted the spirits of domestic securities dealers as most of them saw a decline in their investment banking activities in 2017.
Data available as of Monday revealed year-on-year shrinkages in investment banking incomes for 14 domestic securities firms in 2017, out of a total of 18 listed at the A-share market.
As sterner listing regulations turned away some IPO applicants this year, domestic securities firms were expecting new opportunities from the CDRs.
A report by the China Securities Journal on Monday pointed out that currently, five red-chips had met the requirements for issuing CDRs under the above pilot program.
They included Alibaba, Tencent, Baidu, JD.com, and NetEase, in line with the thresholds that a candidate should have a market capitalization of no less than RMB 200 billion and operate in the high-tech or emerging industries.
Weibo, an SNS giant, and Ctrip, a travelling services portal, might also become eligible if their market capitalization continued to grow, said Mr. Yao Pin, an analyst at the Caitong Securities Co., Ltd.
Large securities dealers with a strong underwriting capacity and an extensive overseas presence would be reaping benefits from a CDR issuance, said Mr. Wang Shuangxiu, an analyst at the HuaAn Securities Co. Ltd.
Currently, two domestic securities dealers were already working on the issuance of CDRs by Alibaba and JD.com, according to a report by the 21st Century Business Herald today.
These two companies were expected to issue their CDRs as early as the third quarter of 2018, said a professional with knowledge of this issue to the above media agency.
Last Friday, China gave a green light for the pilot issuance of CDRs, a move expected to help overseas-listed Chinese technology unicorns trade shares in the domestic stock market.
This pilot program lifted the spirits of domestic securities dealers as most of them saw a decline in their investment banking activities in 2017.
Data available as of Monday revealed year-on-year shrinkages in investment banking incomes for 14 domestic securities firms in 2017, out of a total of 18 listed at the A-share market.
As sterner listing regulations turned away some IPO applicants this year, domestic securities firms were expecting new opportunities from the CDRs.
A report by the China Securities Journal on Monday pointed out that currently, five red-chips had met the requirements for issuing CDRs under the above pilot program.
They included Alibaba, Tencent, Baidu, JD.com, and NetEase, in line with the thresholds that a candidate should have a market capitalization of no less than RMB 200 billion and operate in the high-tech or emerging industries.
Weibo, an SNS giant, and Ctrip, a travelling services portal, might also become eligible if their market capitalization continued to grow, said Mr. Yao Pin, an analyst at the Caitong Securities Co., Ltd.
Large securities dealers with a strong underwriting capacity and an extensive overseas presence would be reaping benefits from a CDR issuance, said Mr. Wang Shuangxiu, an analyst at the HuaAn Securities Co. Ltd.
Currently, two domestic securities dealers were already working on the issuance of CDRs by Alibaba and JD.com, according to a report by the 21st Century Business Herald today.
These two companies were expected to issue their CDRs as early as the third quarter of 2018, said a professional with knowledge of this issue to the above media agency.
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