China Mobile to issue China Depository Receipts (CDRs)

BEIJING—The China Securities Regulatory Commission (CSRC) is planning to give the go-ahead to China Mobile to become the first issuer of China Depositary Receipts (CDRs).
China Mobile (HK) is presently traded on the Hong Kong and New York Stock Exchanges in foreign currency. The issuance of CDRs would enable the company to tap the savings in the local currency, the renminbi yuan (CNY), of Chinese citizens. The Chinese government is concerned about illegal money-flows to Hong Kong to invest in Chinese companies listed on the Hong Kong stock exchange. The issuance of CDRs would open up a legal channel to invest in China Mobile (HK).
China Mobile (HK) is the second-largest stock on the Hong Kong bourse, but the stock lost more than a quarter of its value since the company announced lower than expected profits on Aug. 16.