CDR Fund, the full English name of "Chinese Depository Receipt", is the Chinese depositary receipt. It refers to the investment in which overseas and Hong Kong listed companies keep some of the issued and listed stocks in local custodian banks, which are issued by depository banks in China, listed on the domestic A-share market, traded and settled in RMB, and available for domestic investors to buy and sell. certificates, so as to realize the remote trading of stocks.
The advantages of issuing CDRs are as follows:
1. It can promote the development of the stock market and accelerate the internationalization of my country's capital market.
2. Broaden investment channels for investors and optimize investment portfolios.
3. Provide convenience for domestic financing of overseas listed companies in China, and increase the support for financing of new economy companies will accelerate the transformation of new and old economic structures, and will help enhance the business and profitability of Chinese banks.
The disadvantages of issuing CDRs are as follows:
1. The three-year lock-up period will affect the liquidity of funds.
2. There is uncertainty in the number of alloted shares. If the number of allotments is not large, it may be a drop in the bucket for the tens of billions of unicorn funds, and it is difficult to greatly increase the fund's income.
3. There is uncertainty in the number of CDR issuances. If the number of issuances in one year is small, the fund will rely on credit bonds and ordinary bonds to maintain income all year round, and the income will not be too optimistic.
4. Have the fund managers ever managed such a large scale, have they experienced market tests, have overseas investment experience, and have they conducted in-depth research on the new economy.