Chinese Depositary Receipt - CDR

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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.

INVESTOPEDIA EXPLAINS '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. 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 Full Answer >>
  2. How does a depository bank benefit from issuing an ADR for a foreign company for ...

    For domestic investors the benefits of increasing the portion of their portfolio that they invest in foreign companies is ... Read Full Answer >>
  3. What types of companies benefit from reporting results utilizing constant currencies ...

    Any company that does a substantial amount of business in foreign countries, and is therefore subject to foreign currency ... Read Full Answer >>
  4. What are the differences between B-shares and H-shares traded on Chinese stock exchanges?

    Equity listings in China generally fall under three primary categories: A shares, B shares and H shares. B shares represent ... Read Full Answer >>
  5. What are the differences between H-shares and A-shares on Chinese and Hong Kong stock ...

    Publicly trade companies in China generally fall under three share categories: A shares, B shares and H-shares. A-shares ... Read Full Answer >>
  6. What are the benefits of global depositary receipts (GDRs) to investors?

    Benefits that investing in global depositary receipts (GDRs) can provide to investors include the opportunity to access investment ... Read Full Answer >>
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