CDRs May Help Chinese Tap Into Fortune

摘要

Hong Kong―China's choice-starved investors are moving further along the path toward being able to buy shares in foreign-listed companies, but how should foreigners take such news? They would be well advised to tread carefully and watch for potholes. It's difficult not to be enthusiastic. The Chinese securities regulator said in December that it was "proceeding rather smoothly" ' in setting rules allowing companies listed outside the mainland to issue so-called Chinese depositary receipts. Not only would CDRs provide Chinese investors more choice and access to some of. the state's most attractive assets, but they also are expected to put pressure on Chinese companies to abide by the higher international standards of corporate governance, transparency and accounting observed by non-Chinese companies.