What are some implications of the Cyberspace Administration of China’s (CAC) action to set up a regulatory foundation on the world’s second largest economy as it continues with its digital transformation and technology reforms?
Mainland China’s New Economy, media, and education sectors have recently faced selling pressure. However, the silver lining from the policy stance in tightening the rules on China companies seeking listing in the ADR platform is that local firms are now encouraged to list closer to home, broadening the investment offerings in the onshore capital markets of Shanghai and Hong Kong. Read the full CIO Weekly report here.
Watch this 2-min short summary on the report.
THE DBS CIO OFFICE ADVOCATES…
For investors stay the course as the CIO remains constructive on the tech sector of strategic importance such as upstream technology, green energy, e-Commerce, leading health care and software applications.
❓ What is an ADR? American Depositary Receipt (ADR) is a security created by a U.S. bank that evidences ownership to a specified number of shares of a foreign security held in a depository in the issuing company's country of domicile.