ADRs
A depository receipt (DR) is a type of transferable financial security that is
traded on a local stock exchange but represents a security that is issued by a
foreign publicly listed company. One of the most common DR is the American
Depositary Receipt (ADR). It was invented in the 1920s to meet investors'
global investment needs and companies' international financing needs. An ADR is
a dollar-denominated U.S. security that represents a non-U.S. company's
publicly traded stock. ADRs are traded in the U.S. stock markets just like any
U.S. security. The terms ADR and American Depository Share (ADS) are often
thought to be the same. Technically, an ADS is the actual share trading, while
an ADR represents a bundle of ADSs.
There are four different types of sponsored ADR programs: Level I, Level II,
Level III, and Rule 144A. Level I ADRs are traded in the over-the-counter (OTC)
market; Level II ADRs are listed on U.S. securities exchanges (including NYSE,
AMEX) or quoted on NASDAQ; and Level III ADRs refers to shares that are floated
as a public offering on one of the U.S. exchanges or NASDAQ. Rule 144A
facilitates the trading of privately placed (restricted) securities by
sophisticated institutional investors.
As of June 2004, there are about 50 Chinese ADRs listed on the following U.S.
boards:
NYSE
NASDAQ
OTCBB
Rule 144A
NYSE
As of June 2004, there are 18 Chinese ADRs trading on the New York Stock
Exchange (NYSE). These can be either Level II or Level III ADRs.
Company Name
|
Ticker
|
Sector
|
ALUMINUM CORP OF CHINA LTD
|
ACH
|
MINING
|
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD
|
CBA
|
AUTO MANUFACTURERS
|
CHINA EASTERN AIRLINES CORP LTD
|
CEA
|
AIRLINES
|
CHINA LIFE INSURANCE
|
LFC
|
INSURANCE
|
CHINA MOBILE LTD
|
CHL
|
TELECOMMUNICATIONS
|
CHINA NATIONAL OFFSHORE OIL CORP LTD
|
CEO
|
OIL & GAS
|
CHINA PETROLEUM & CHEMICAL CORP
|
SNP
|
OIL & GAS
|
CHINA SOUTHERN AIRLINES CO LTD
|
ZNH
|
AIRLINES
|
CHINA TELECOM CORP LTD
|
CHA
|
TELECOMMUNICATIONS
|
CHINA UNICOM LTD
|
CHU
|
TELECOMMUNICATIONS
|
GUANGSHEN RAILWAY CO LTD
|
GSH
|
TRANSPORTATION
|
HUANENG POWER INTERNATIONAL INC
|
HNP
|
ELECTRIC UTILITY
|
JILIN CHEMICAL INDUSTRIAL CO LTD
|
JCC
|
CHEMICALS
|
PETROCHINA CO LTD
|
PTR
|
OIL & GAS
|
SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORP
|
SMI
|
SEMICONDUCTORS
|
SINOPEC BEIJING YANHUA PETROCHEMICAL CO LTD
|
BYH
|
CHEMICALS
|
SINOPEC SHANGHAI PETROCHEMICAL CO LTD
|
SHI
|
CHEMICALS
|
YANZHOU COAL MINING CO LTD
|
YZC
|
MINING
|
NASDAQ
As of June 2004, there are 5 Chinese ADRs trading on the NASDAQ. These can be
either Level II or Level III ADRs.
Company Name
|
Ticker
|
Sector
|
CTRIP.COM INTERNATIONAL LTD
|
CTRP
|
INTERNET PRODUCTS & SERVICES
|
LINKTONE LTD
|
LTON
|
TELECOMMUNICATIONS
|
NETEASE.COM
|
NTES
|
INTERNET PRODUCTS & SERVICES
|
SHANDA INTERACTIVE ENTERTAINMENT LTD
|
SNDA
|
INTERNET PRODUCTS & SERVICES
|
TOM ONLINE INC
|
TOMO
|
INTERNET PRODUCTS & SERVICES
|
OTCBB
As of June 2004, there are 21 Chinese ADRs trading on the Over the Counter
Bulletin Board (OTCBB). These are considered Level I ADRs. While the NASDAQ is
the main OTC system in America, there are thousands of more-obscure companies,
frequently penny stocks, that don't meet NASDAQ's listing requirements. These
companies trade separately, often with their prices listed only once daily, on
the OTCBB or what is sometimes called pink sheets (a daily publication
complied by the National Quotation Bureau containing price quotations for OTC
stocks).
Company Name
|
Ticker
|
Sector
|
ANGANG NEW STEEL COMPANY LTD
|
ANGGY
|
METAL PRODUCTION & DISTRIBUTION
|
CHINA OILFIELD SERVICES LTD
|
CHOLY
|
OIL & GAS RELATED SERVICES
|
CHINA SHIPPING DEVELOPMENT CO LTD
|
CSDXY
|
TRANSPORTATION
|
DATANG INTERNATIONAL POWER GENERATION CO LTD
|
DIPGY
|
ELECTRIC UTILITY
|
GUANGZHOU PHARMACEUTICAL CO LTD
|
GZPHY
|
PHARMACEUTICALS
|
GUANGZHOU SHIPYARD INTERNATIONAL
|
GSHIY
|
SHIPBUILDING
|
JIANGSU EXPRESSWAY COMPANY LIMITED
|
JEXYY
|
COMMERCIAL & INDUSTRIAL SERVICES
|
JIANGXI COPPER CO LTD
|
JIXAY
|
METAL FABRICATION
|
MAANSHAN IRON & STEEL
|
MISCY
|
METAL PRODUCTION & DISTRIBUTION
|
SHANGHAI CHLOR-ALKALI CHEMICAL CO LTD
|
SLLBY
|
CHEMICALS
|
SHANGHAI ERFANGJI CO LTD
|
SHFGY
|
MACHINERY
|
SHANGHAI JINQIAO EXPORT PROCESSING ZONE DEVELOPMENT CO LTD
|
SJQIY
|
REAL ESTATE
|
SHANGHAI LUJIAZUI FIN&TRADE
|
SLUJY
|
REAL ESTATE
|
SHANGHAI TYRE & RUBBER
|
SIRBY
|
AUTO PARTS & EQUIPMENT
|
SHANGHAI WAIGAOQIAO FREE TRADE ZONE DEVELOPMENT CO LTD
|
SGOTY
|
REAL ESTATE
|
SHENZHEN SPECIAL ECON ZONE
|
SZPRY
|
REAL ESTATE
|
TIANJIN CAPITAL ENVIRONMENTAL PROTECTION CO LTD
|
TCEPY
|
WASTE & RECYCLING SERVICES
|
TRAVELSKY TECHNOLOGY LTD
|
TSYHY
|
SOFTWARE
|
TSINGTAO BREWERY CO LTD
|
TSGTY
|
BEVERAGES
|
ZHEJIANG EXPRESSWAY CO LTD
|
ZHEXY
|
COMMERCIAL & INDUSTRIAL SERVICES
|
ZHEJIANG SOUTHEAST ELECTRIC POWER CO
|
ZHEJY
|
ELECTRIC UTILITY
|
Rule 144A
As of June 2004, there are 7 Chinese ADRs trading on the 144A portal.
Individuals cannot trade or invest in these companies as only qualified
institutional investors (QIBs) can trade these positions among themselves. QIBs
must own or manage at least $100 million in securities.
Company Name
|
Sector
|
HARBIN POWER EQUIPMENT
|
ELECTRICAL MANUFACTURING
|
JIANGLING MOTORS CORPORATION
|
AUTO MANUFACTURERS
|
QINGLING MOTORS CO
|
AUTO MANUFACTURERS
|
SINOPEC YIZHENG CHEMICAL FIBRE CO LTD
|
CHEMICALS
|
TINGYI HOLDINGS CORP.
|
FOOD PRODUCTS & SERVICES
|
ZHEJIANG SOUTHEAST ELECTRIC POWER CO
|
ELECTRIC UTILITY
|
Direct Listings
There are many Chinese companies listed directly on the NASDAQ in the form of
regular U.S. stocks, rather than as an ADR. For example, Sina Corporation
(SINA), an online media company providing value-added information services for
Chinese communities worldwide; and Sohu.com Inc (SOHU), a holding company
investing in Chinese operating entities, including Sohu.com Limited. Others
include AsiaInfo Holdings, Inc. (ASIA), Chinadotcom Corp. (CHINA), and Qiao
Xing Universal telephone (XING), just to name a few.
In addition, there are some U.S.-based companies with major operations and
markets in China, such as UTStarcom Inc (UTSI) which provides wireless and
wireline access and Internet protocol switching solutions to mainly Chinese
markets.