Hong Kong exchange to introduce depositary receipts

Hong Kong Exchanges and Clearing will introduce depositary receipts to attract non-Chinese listings from abroad, the South China Morning Post reported. The scheme will start in the third quarter of next year, the stock exchange operator said, adding that it would lobby the government to reduce the 0.1% stamp duty. Although the Hong Kong Stock Exchange announced a record-high interim profit on August 15, it is facing serious competition from mainland bourses for Chinese listings, analysts said. The exchange's chief executive, Paul Chow, said fund-raising would be lower because of the absence of new large mainland offerings.