The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Ninebot IPO breathes belated life into Chinese CDRs

Does a rare CDR deal in China this month herald a kick-start for the asset class?

Ninebot-Wang-Ye-segway-R-960x615.jpg
Ninebot president Wang Ye: loan rider or leader of the pack?

When electric scooter maker Ninebot completed the first-ever sale of Chinese depositary receipts (CDRs) on Monday (October 19), almost no one stood up and took notice.

It is nearly two and a half years since mainland regulators set out to convince foreign-registered Chinese firms to sell CDRs at home.

The State Council loved the idea. In May 2018, China’s cabinet was bullish on the outlook of a new asset class designed to mimic US depositary receipts.

During the last two decades, myriad Chinese firms have registered overseas, to skirt rules that restrict ‘foreign’ capital from investing in sensitive industries such as telecommunications and the media.

Early-era Chinese firms, including Sina, Sohu and NetEase, took advantage, adopting a variable interest entity (VIE) structure and selling shares in New York.

Regulators saw CDRs as the ideal way to convince some of these listed firms – and a few unlisted ones – to return to the motherland and hit up investors in Shanghai or Shenzhen.

Damp squib

At the time, the move made good sense.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree