Citi Issuer Services, a division of Global Transaction Services, will begin offering services for issuers of Hong Kong Depositary Receipts (HDRs) on 1 July. Through its existing capabilities and experience in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) in Asia Pacific, Citi will target a wide array of global issuers looking to raise capital via the Hong Kong Stock Exchange.
Citis launch of depositary receipt services for issuers in Hong Kong follows the recent announcement by Hong Kong Exchanges and Clearing Limited (HKEx) permitting the issuance and trading of HDRs on the exchange. Effective 1 July, instruments issued by a depositary on behalf of an issuer can be listed on the HKEx. Under regulatory guidelines, HDRs will be traded on the HKEx main board.
“The decision by Hong Kong Exchanges and Clearing Ltd to allow the trading of depositary receipts is a landmark event for Asias capital markets,” says Anthony Nappi, managing director, Asia Pacific region head of Citi global transaction services. “With our existing depositary receipts capabilities, Citi is delighted to be a leader in depositary receipts globally and to service this exciting new opportunity for investors and issuers.”
“Depositary receipts are an established structure for cross-border listings in New York and London,” says Siu Chan Kwan, director, Asia Pacific depositary receipts sales head at Citi. “With the introduction of HDRs, Hong Kong can now offer issuers an alternative to tap capital flows from China. At the same time, HDRs will allow Hong Kong investors opportunities to invest in companies outside Hong Kong in Hong Kong Dollars and directly on HKEx. As the first bank to introduce GDR services in Asia Pacific, we are proud that Citi is ready to extend its award winning DR services to HDR issuers and investors.”