Xiaomi CDRs, SoftBank’s successors, and China’s Samsung investigation
https://techcrunch.com/2018/06/04/xiaomi-softbank-samsung/
The weekend provided no rest to news-wary reporters, with major announcements coming from Xiaomi, SoftBank, and the Chinese government the past few days that will continue to change the global tech landscape.
One of the most important yet underreported stories of 2018 has been the development of Chinese Depository Receipts (known as CDRs). I wrote a comprehensive primer on the investment mechanism a few weeks ago, but the summary is that CDRs will give mainland Chinese investors access to overseas-listed stocks that setup the right custodian accounts. Due to domestic capital controls and relatively weak stock exchange rules in China, many Chinese tech giants are listed on overseas stock exchanges in New York and Hong Kong.