The full name of CDR is "China Depositary Receipt", which simply means that enterprises listed outside China (including those listed in Hong Kong) deposit some shares in domestic banks for custody, and then banks issue valuable certificates based on these shares, and then list them in domestic A shares.

This certificate is called CDR. Investors buy CDRs, which is equivalent to buying shares of these companies.

The so-called strategic placement fund (unicorn fund) we heard recently serves for these overseas listed companies to return to A shares, mainly by investing the funds raised from retail investors in CDRs.

I sorted out the flow of funds: retail investors → unicorn funds →CDR→ domestic banks → overseas (including Hong Kong) listed companies.

In other words, in fact, the mode of CDR is to let these overseas listed companies return to A shares, and the overseas listed companies in China participating in CDR this time are all Internet giants: Xiaomi, Tencent, Alibaba, JD.COM, Baidu and Netease.