China has adopted new rules governing the issuance of securities that will allow the domestic flotation of overseas-listed innovators, the China Securities Regulatory Commission said in a notice published late on Wednesday.
China is encouraging overseas-listed Chinese companies to launch secondary listings in the domestic market through the issuance of China Depositary Receipts (CDRs), modeled on the popular ADRs used in the United States.
The trial rules, which are effective immediately, will provide the "institutional foundation" for innovative companies to issue CDRs on the domestic market, the China Securities Regulatory Commission said.
The CSRC statement said the program would support innovative companies that comply with "national strategies" and have "mastered key technologies".
The regulator said it has set strict selection criteria and would strictly control the size, timing and pace of CDR issuance.
The CSRC approved the launch of six Chinese mutual funds on Wednesday, which would be allowed to become "strategic investors" in the upcoming listing of high-tech firms.
The pilot program would allow domestic investors access to tech giants such as Alibaba and Baidu, which are listed in the United States, state news agency Xinhua said.