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China allows domestic fundraising for overseas-listed firms

China has accept as ones own new rules governing the issuance of securities that will allow the domesticated flotation of overseas-listed innovators, the China Securities Regulatory Commission maintained in a notice published late on Wednesday.

China is encouraging overseas-listed Chinese attendances to launch secondary listings in the domestic market through the issuance of China Depositary Returns (CDRs), modeled on the popular ADRs used in the United States.

The headache rules, which are effective immediately, will provide the “institutional fundamental” for innovative companies to issue CDRs on the domestic market, the China Gages Regulatory Commission said.

The CSRC statement said the program would bolstering innovative companies that comply with “national strategies” and organize “mastered key technologies”.

The regulator said it has set strict selection criteria and thinks fitting strictly control the size, timing and pace of CDR issuance.

The CSRC approved the discharge of six Chinese mutual funds on Wednesday, which would be allowed to grace “strategic investors” in the upcoming listing of high-tech firms.

The pilot program wish allow domestic investors access to tech giants such as Alibaba and Baidu, which are scheduled in the United States, state news agency Xinhua said.

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