DEFINITION of 'Chinese Depositary Receipt - CDR'

A type of depositary receipt that is traded on Chinese stock exchanges. A CDR is a certificate issued by a Chinese bank that represents a pool of foreign equity that is traded on local Chinese exchanges. Foreign companies can use CDRs to allow both Chinese institutional and private investors to own their stock.

BREAKING DOWN 'Chinese Depositary Receipt - CDR'

In other words, a depositary receipt (DR) is a certificate issued by a bank representing equity in foreign companies, which is traded on stock exchanges within the issuing country.

CDRs are a recent addition to the expansion of depositary receipts that started in the 1920s. Other forms of depositary receipts are global, European, and international. The most common type is the American depositary receipt.

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RELATED FAQS
  1. What are the benefits of global depositary receipts (GDRs) to investors?

    Discover how the issuance and use of global depositary receipts can benefit investors in a variety of ways, including greater ... Read Answer >>
  2. Does a company's American depositary share equal one share of common stock?

    American depositary shares (ADS) come into play when a foreign company wants its shares to trade on a major American exchange. ... Read Answer >>
  3. Can stocks be traded on more than one exchange, such as, for example, on both the ...

    A stock can trade on any exchange on which it is listed. And to be listed it must meet all of the exchange's listing requirements ... Read Answer >>
  4. What parties are involved in the creation of an American depositary receipt?

    An American depositary receipt (ADR) is a legal certificate issued by a recognized U.S. bank that represents a specific number ... Read Answer >>
  5. Why are big foreign companies considering delisting their American depositary receipts?

    American depositary receipts (ADRs) were developed to give investors an easier way to invest in foreign companies. An ADR ... Read Answer >>
  6. How are American Depository Receipts (ADRs) priced?

    Understand what American depositary receipts are and how they work, including how the price of ADRs is determined by the ... Read Answer >>
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