Can I subscribe for new shares by holding funds?
Holding funds is not allowed to subscribe for new shares. The new quota of Shanghai and Shenzhen stock markets can only be obtained through unrestricted A shares or unrestricted depositary receipts held by investors. The market value of on-site funds, restricted shares, convertible bonds, B shares and other assets will not be included in the market value required for subscription of new shares.
So what is a depository receipt? The so-called Depositary Receipts (CDRs) are securities issued in China on the basis of overseas securities, representing the rights and interests of overseas basic securities. Depositary receipts can be traded on the stock exchange like stocks. For some domestic unicorn enterprises listed overseas, they can return to A-share listing in the form of depository receipts.