In China global depository receipts (GDRs) are certificates of A-share stocks traded in overseas markets, denominated in yuan.
China’s securities regulator is pausing approvals for new applications to sell GDRs
stems in part from concern that a substantial portion of GDR issuance is being taken up by Chinese investors who later convert the securities into shares in their home market to profit from persistent price gaps
The GDRs, primarily listed in Zurich, have tended to trade at discounts. They become fungible with so-called A-shares in mainland China after 120 days.
Bloomberg carry the report, citing people familiar with the situation