Chinese Depositary Receipt - CDR

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. SEC Form F-6

    A filing with the Securities and Exchange Commission (SEC) required ...
  3. American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company ...
  4. Receipt

    A written acknowledgment that something of value has been transferred ...
  5. Linkage

    Linkage occurs when an investor is able to purchase a security ...
  6. Depositary Receipt

    A negotiable financial instrument issued by a bank to represent ...
Related Articles
  1. Managing Wealth

    Investing in Foreign Stocks: ADRs and GDRs

    Depositary Receipts are easy ways to invest in foreign stocks, regardless of what part of the world you live in.
  2. Investing

    Which Receipts Save Big Money at Tax Time

    Don't wait to April 13th to set up a smart receipt-filing system. These 7 categories could save you some significant money.
  3. ETFs & Mutual Funds

    Getting Into International Investing

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

    An Introduction To Depositary Receipts

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

    Chinese Investors Snap Up 110B in U.S. Real Estate

    According to a new study, Chinese buyers have been snapping up American real estate at record levels in the last five years.
  6. ETFs & Mutual Funds

    Where Do Chinese Equities Go from Here?

    Is it time to go long or short on Chinese equities?
  7. Markets

    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.
  8. Markets

    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?
  9. Markets

    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?
  10. Markets

    China Owns US Debt, but How Much?

    See how much U.S. debt is actually owned by the Chinese, what it means to the economy, and why China is willing to lend so much money.
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. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center