Multinationals as well as Hong Kong-listed Chinese firms are keen to list in China, which is creating significant opportunities for the Bank of New York Mellon Corp, the world's biggest custodian and issuer of depository receipts (DRs), a senior executive said.
-- Mellon works with Chinese regulators on CDR programme
-- Aims to act as a custodian of foreign firms' shares
-- Aims to partner with local banks on CDR issuance
The US bank has been working closely with the China Securities Regulatory Commission and the country's two stock exchanges, advising them on the rollout of China Depository Receipts (CDRs), which represent foreign companies' equity shares, said Christopher Kearns, Asia Pacific head of DRs.
Earlier this month, China agreed to let qualified foreign companies list on its stock exchange through issuing shares or depository receipts, paving the way for foreign firms such as HSBC Holdings Plc and Bank of East Asia to be listed locally.
Hong Kong-listed China Mobile said it would like to list in Shanghai as early as possible via the issuance of CDRs There has been no official timetable yet for local listings of foreign firms. "Every multinational company would be interested in looking at Shanghai as a potential listing environment," Kearns said in an interview. "We've been in discussion with many companies who are very interested in accessing the market."
Bank of New York Mellon expects to play a big role in China's planned CDR programmes, aiming to act as a custodian of foreign firms' shares and to partner with local banks on CDR issuance.