Research On Legal Issues Of Depository Receipt Supervision In My Country

With the gradual deepening of global economic integration,more and more overseas companies are interested in issuing stocks or bonds in China’s securities market,and the emergence of depositary receipts just meets the market demand.CDRS are a new type of securities issued by foreign issuers in China’s securities market to achieve the purpose of overseas listing and financing.Depositary receipts as a new investment tool since produced,unicom and securities market role,help degree of internationalization of securities market and the expansion of business scope,the outside the quality of the listed company through the issuance of depositary receipts way of financing and share,optimize company financing channels,and increase investors’ investment choices,help investors to form a rational view.Since Shanghai Petrochemical launched China’s first overseas DEPOSitary receipt,the market value and trading volume of China’s depositary receipts have increased year by year.On the basis of the Securities Law of the People’s Republic of China,the CSRC issued special regulations in 2018,laying an institutional foundation for domestic issuance and trading of DEPOSitary receipts.As a result,the trading volume of depositary receipts showed a multiple growth.As a typical representative of cross-border stock trading,depositary receipts include all parties,including domestic and foreign issuers,custodian financial institutions,depositary financial institutions and their investors.The risk of the securities market itself and the unique transaction risk of the DEPOSitary receipts make supervision particularly necessary.The Depositary receipts need to be supervised by domestic and overseas securities regulatory financial institutions,China stock exchanges,the People’s Bank of China,the State Administration of Foreign Exchange and other institutions.A general survey of the regulatory status of depositary receipts shows that as a "small class of securities",depositary receipts have been ignored by the market and laws,and the legislative level of relevant legal norms is low and operability is not high.In addition,there are unclear and imperfect responsibilities of regulatory bodies,lack of detailed provisions in international regulatory cooperation,and last but not least,insufficient legal protection for investors.In view of the above problems,the author believes that first of all,the CSRC should attach importance to the value of the DEPOSITARY RECEIPTS,first issue normative documents to improve the deficiency in administrative regulations,and then integrate normative documents to improve the legal supervision system of the depositary receipts.Secondly,we should pay attention to the responsibilities and obligations of the regulatory body,and appropriately empower the self-regulatory organizations to extend the supervision grip.Thirdly,THE CSRC should refine the cooperation procedures with overseas regulatory institutions and form a regular dialogue mechanism.Finally,it is necessary to clarify the legal status of the depositary,make up for the lack of information caused by the space and time interval,and protect the rights and interests of investors.