Marcum Asia's Bernstein on China Pausing GDR

The video discusses Global Depository Receipts (GDRs), their role in raising foreign capital, and their significance to China. It highlights the impact of GDRs on capital raising, the US-China agreement on delisting concerns, and the disconnect between geopolitical events and business activities. The video also covers the outlook for fundraising and IPOs, noting the prevalence of SPACs as a quicker, less expensive alternative to traditional IPOs.

What is a Global Depository Receipt (GDR)?

• A financial instrument used for domestic trading only

• A currency exchange mechanism

• A security created by a depository bank backed by underlying shares

• A type of bond issued by a foreign government

Why is it important for China to maintain transparency in GDR transactions?

• To increase domestic investment

• To maintain tight fiscal and monetary controls

• To reduce foreign competition

• To promote local businesses

How do current regulations affect market preferences for raising capital?

• They make it easier to raise capital domestically

• They have no impact on market preferences

• They are catching up to market innovativeness

• They discourage foreign investment

What recent agreement has influenced the optimism around delisting concerns?

• A trade agreement between China and Europe

• A new policy by the World Bank

• A financial agreement between China and Japan

• An agreement between the US and China

Which region is becoming a competitive emerging market alongside China?

• South America

• Middle East

• Southeast Asia

• Eastern Europe

What is the current trend regarding IPOs and SPACs?

• SPACs are being phased out

• Both IPOs and SPACs are declining

• SPACs are a quicker and less expensive option than IPOs

• IPOs are more popular than SPACs

What is expected to happen in China by the latter part of the year?

• A rise in domestic-only businesses

• An opening of China with improved infrastructure

• A complete closure of international markets

• A decrease in foreign investments