China’s Securities Regulatory Commission (CSRC) has published draft rules that will enable offshore-listed tech firms to also list on mainland stock exchanges, Reuters reports, as well as plans for an exchange link between Shanghai and London.
The rules focusing on the issuance of China Depository Receipts (CDRs) – a type of equity certificate that can be traded on the mainland – will hope to attract home-grown tech giants such as Tencent, Alibaba, and JD to make a domestic flotation.
The rules “lay the foundation for innovative companies to return to the domestic capital markets via the issuance of CDRs,” said the CSRC. There will be a one-month period for public comment before the rules become official, according to the Securities Times.
Similarly, the proposed Shanghai-London Stock Connect will allow companies to list on the other’s markets by issuing CDRs.