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



china pause gdr 16 March 2023