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I. Business Overview
GDRs, or Global Depository Receipts, are negotiable certificates issued and traded on the securities market of a country or region that represent marketable securities interest of overseas companies and require a commercial bank to provide custody services for the underlying securities in the country. In June 2019, the first domestic GDR, Huatai Securities, was successfully launched on the London Stock Exchange, marking the official opening of the “Shanghai-London Stock Connect”. In February 2022, the CSRC issued regulations on the interconnectivity of securities markets, under which the Shanghai and Shenzhen securities markets will further expand their interconnectivity with those overseas. Following the United Kingdom, Germany and Switzerland will be included in the interconnectivity mechanism of securities markets.
II. Target Customers
According to relevant GDR regulations, the GDR custody services of ICBC mainly target at: Companies listed on the Shanghai and Shenzhen Stock Exchange and planning to issue GDR in Europe.
III. Scope of Services
1.Safekeeping of underlying securities: Keep domestic underlying securities safe for the GDR issuer;
2.Transaction processing and supervision: Efficiently handle the generation and redemption of GDR, and assist in monitoring abnormal transaction and issuance caps;
3.Custody reports: Submit the reports on transaction to GDR issuers on a regular basis;
4.Regulatory communication: Assist GDR issuers in communication with regulatory authorities;
5.Local support: Domestic and overseas branches and the Group’s subsidiaries provide local services such as roadshows for GDR issuers;
6.Comprehensive services: Provide offshore and onshore integrated high-quality comprehensive financial services.
IV. Service Advantages
As the largest custodian bank in China, ICBC has maintained its first position in the market for 25 consecutive years in terms of market share of asset custody business.
As the first domestic custodian bank of GDR underlying securities in China, ICBC has developed market operation rules and led cross-border custody innovation, and has been invited to participate in the discussion on regulatory and infrastructure policies and system.
ICBC has established 426 institutions in 49 countries and regions, with a service network covering six continents and the world’s major international financial centers, contributing to global operations for companies and providing GDR issuers with local services in the place of issuance.
V. Business Flow
VI. Contact Information
If you would like to apply for any service, please contact the Global Asset Custody Division of Asset Custody Department of ICBC:
Contact: He Ting
Tel.: (8610) 81012488
E-MAIL: ting.he@icbc.com.cn
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