What are the concepts of "IPO" and "CDR" in stock market?
Initial public offering (IPO) means that an enterprise or company (joint stock limited company) sells its shares to the public for the first time (IPO means that a joint stock company makes an initial public offering to the public).
Usually, the shares of listed companies are sold through brokers or market makers according to the agreed terms in the prospectus or registration statement issued by the corresponding CSRC. Generally speaking, once the initial public listing is completed, the company can apply for listing on the stock exchange or quotation system. A limited liability company shall be changed into a joint stock limited company before applying for initial public offering.
Chinese Depositary Receipt (CDR) refers to an investment certificate that overseas (including China Mainland and Hongkong) listed companies entrust some of the issued and listed shares to local custodian banks, which are issued by domestic depository banks, listed on the domestic A-share market, settled in RMB and traded by domestic investors, thus realizing the off-site trading of shares.
First of all, issuing CDR can promote the development of the stock market and accelerate the internationalization of China's capital market. Capital market is an important part of market economy, which plays a fundamental role in the allocation of financial resources and guiding the allocation of physical resources, the most important of which is the stock market. China's stock market has made great progress since it was established in the early 1990s, but there are also many problems that can't be ignored, such as the low overall quality of listed companies and investors' lack of confidence in market investment. In order to change the existing status, issuing CDR can be one of the implementations.
On the one hand, the issuers of CDRs are generally companies with relatively good performance and high level of corporate governance and management, such as "red chip" companies in the Hong Kong market. CDRs representing these companies will be introduced into China stock market, and the perfect supervision and delisting system of listed companies will force those companies with relatively poor performance and management to learn advanced management ideas and methods, which will greatly improve the overall quality of listed companies.
On the other hand, the internationalization of China's capital market will be an inevitable trend, including the internationalization of institutions, trading varieties, trading systems, market supervision and other aspects. As a financial innovation, CDR can strengthen the exchange and cooperation between China's capital market and overseas markets, improve the supervision level and international reputation of China's capital market, and gradually connect with the international community.
Secondly, issuing CDR can broaden investors' investment channels and optimize their investment portfolio. According to the data released by the People's Bank of China, by the end of 2005, the savings deposits of urban and rural residents nationwide reached 14. 1 trillion yuan, and the balance of corporate deposits also reached 9.6 trillion yuan. An important reason for this high savings rate is the current poor investment channels.
China's stock market has been in a downturn since the sharp drop of 200 1. In addition, the bond market is small, real estate investment is facing supervision, and emerging financial investment methods lack credit system and related norms, which leads to investors' small choice. At present, if CDR is introduced, it will undoubtedly expand the investment scope of investors. At the same time, companies that issue CDRs are generally overseas high-quality listed companies, which have great investment value and can enrich investors' securities portfolio, thus dispersing investors' risks and restoring investors' confidence.
Third, the issuance of CDR facilitates the mainland financing of overseas listed companies. At present, overseas companies, especially China enterprises listed overseas, have a strong demand for direct financing in the Mainland, and the existing laws and systems in China have strict regulations on direct financing of such companies in the A-share market. If CDR is introduced, these companies can bypass some restrictions, realize direct financing in the mainland market, optimize the capital structure of enterprises, meet their financing needs, and at the same time make them have more profit space.
Finally, the issuance of CDR is conducive to improving the business and profitability of Chinese banks. In recent years, in order to make full preparations before foreign banks enjoy "national treatment", China's banking industry has developed rapidly, and major banks have enhanced their competitiveness through various channels. Banks' participation in CDR issuance can not only expand their business scope, but also obtain considerable issuance and service fees and improve their profitability. At the same time, as CDR and underlying stock operate in two different markets, international cooperation between banks can be strengthened and the internationalization process of China banking industry can be accelerated.
The stock market is the place where issued stocks are transferred, traded and circulated, including exchange market and OTC market. Because it is based on the distribution market, it is also called the secondary market. The structure and trading activities of the stock market are more complicated than the issuance market (primary market), and its role and influence are also greater.
The stock market originated from 1602 when the Dutch bought and sold the shares of the Dutch East India Company on the Amster River Bridge. The formal stock market first appeared in the United States. The stock market is a place where speculators and investors are active, and it is a thermometer of economic and financial activities of a country or region. Bad phenomena in the stock market, such as short selling of goods, will lead to various hazards such as the stock market crash. The only constant thing about the stock market is that it keeps changing. There are two trading markets in Chinese mainland: Shanghai Stock Exchange and Shenzhen Stock Exchange.
IPO and cdr are purchased in different ways.
IPO can open an account on related platforms, such as Oriental Fortune, 999 Financial Live, Straight Flush and other platforms to buy related stocks;
Cdr is purchased on platforms such as brokers and approved banks.
What is the difference between ipo and cdr? There is a big difference between the two. One is to go public directly, and the other is to store the stocks listed in different places in relevant institutions for people to buy, and the purchase methods are different.