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.

RELATED TERMS
  1. Y

    A letter that appears on a Nasdaq stock symbol specifying that ...
  2. Russia ETF

    An exchange-traded fund that invests in Russian stocks, either ...
  3. Linkage

    Linkage occurs when an investor is able to purchase a security ...
  4. Global Registered Share

    A share issued and registered in multiple markets around the ...
  5. American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company ...
  6. European Depository Receipt - EDR

    A negotiable security (receipt) that is issued by a European ...
Related Articles
  1. Investing

    Chinese Companies Are Leaving U.S. Markets

    Chinese companies are pulling out of U.S. exchanges and that may be a good thing.
  2. Investing

    An Introduction To Depositary Receipts

    Learn about a security that allows you to invest in a foreign company through your local exchange.
  3. Investing

    Getting Into International Investing

    Diversifying can mean not only investing in various asset classes but also venturing beyond domestic exchanges.
  4. Investing

    Do You Need A Rent Receipt?

    Landlords don't always bother to send receipts to renters. But there are important reasons renters should insist on getting proof they paid their rent.
  5. Insights

    The 3 Industries Driving China's Economy

    Read an analysis of the Chinese economy and its major sectors, particularly after a series of pro-market reforms took place in China in 1978.
  6. Tech

    Can the Tech Sector Save the Ailing Chinese Economy?

    The tech sector has been the sole winner in the declining Chinese market. Does it have the potential to sustain the momentum, and can it save the Chinese economy?
  7. Investing

    MSCI Just Made Investing in China Easier

    Investment research firm MSCI Inc. announced Monday that it would include American Depository Receipts (ADRs) of Chinese companies in its Emerging Market Index.
  8. Insights

    Is It the Right Time to Invest in China?

    A crash in August and a partial recovery thereafter. What's driving China's markets, and are Chinese investments still a good bet in the long run?
  9. Investing

    Modernize Your Portfolio With ETF Futures

    Gain access to premier, highly liquid ETFs with lower capital requirements.
  10. Investing

    How the Chinese Stock Market Heavily Affects the US

    Learn about the ways in which the Chinese stock market affects the U.S. economy, the dollar, the interest rate and imports and exports.
RELATED FAQS
  1. Why would a company choose to use global depositary receipts (GDRs) for financing?

    Learn why a company might choose to utilize global depositary receipts for financing, along with the many other benefits ... Read Answer >>
  2. What are the differences between global depositary receipts (GDRs) and American depositary ...

    Discover some of the similarities and differences between global depositary receipts and American depositary receipts, and ... Read Answer >>
  3. 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 >>
  4. Is there a difference between ADR and ADS?

    American depositary receipts (ADRs) allow foreign equities to be traded on U.S. stock exchanges; in fact, this is how the ... 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. Why would an investor want to hold an American Depository Receipt rather than the ...

    Learn about the advantages for investors of using American Depositary Receipts instead of investing directly in the underlying ... Read Answer >>
Hot Definitions
  1. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. Backward Integration

    A form of vertical integration that involves the purchase of suppliers. Companies will pursue backward integration when it ...
  4. Pari-passu

    A Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors or obligations ...
  5. Interest Rate Swap

    An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for ...
  6. Custodian

    A financial institution that holds customers' securities for safekeeping so as to minimize the risk of their theft or loss. ...
Trading Center