The rise and rise of Chinese DRs

Published: January 8, 2020

Chinese Depositary Receipts are becoming a major force in the DR world, leading to an increasing number of European jurisdictions setting up the framework to facilitate new routes to listing companies in what some estimate to be a US$1 trillion dollar market.

China’s moves to open up its capital markets to foreigners since 2015, combined with better connectivity among European financial centres has made Chinese Depositary Receipts (CDRs) a big growth product. 

A CDR is a type of depositary receipt that is listed and traded on a Chinese stock exchange representing the underlying shares of a non-Chinese company. Put simply, it’s a way for US and EMEA region listed companies to have their equity trade on China’s mainland markets. 

This includes Chinese companies that have listed in the US – of which there have been plenty in the last few years.

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