Another Chinese company scraps GDR plan as listing rules tighten

SHANGHAI/SINGAPORE : Bethel Automotive Safety Systems Co scrapped plans to issue Global Depository Receipts , citing changes in domestic and overseas capital market conditions, after China tightened rules for GDR listings.

The new GDR rules by China's securities regulator last month put curbs on the use of proceeds and made issuances liable to national security reviews, potentially dampening Chinese companies' interest in listing in Europe, bankers said. The Shanghai-listed automotive braking system manufacturer said on Monday it decided to terminate the GDR plan after considering its financial and operational situations.

"The termination will not have a substantial impact on the company's production, operation and sustainable development," Bethel said in a statement to the exchange.Earlier this month, Shenzhen-listed medical devices maker Jiangsu Yuyue Medical Equipment & Supply Co cancelled a proposed Swiss GDR offering plan, citing changes in market conditions.

More than a dozen Chinese companies have already listed themselves in Zurich and London via GDR - most of them over the past year - as firms looked for alternate overseas fundraising venues amid heightened Sino-U.S. tensions.

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