TWELVE companies will be launching sponsored American depositary receipt (ADR) programmes over the next three months, raising by nearly half the number of companies using this technique to help US investment.
The series of launches follows a promotion programme at the beginning of the year by the Bank of New York, the world's leading depositary which has achieved particular success in the territory.
The bank has also been asked to set up an ADR programme for a company which has B shares traded on the Shanghai stock market, although approval has not yet been given by Beijing authorities for the issue.
''This will take time but it will happen,'' said a spokesman for the bank. It is expected this programme should become active in the second half of this year.
ADRs, sometime described as global depositary receipts, make it easier for overseas investors to buy stocks traded in other markets.
The depositary, an American bank, effectively holds the company's shares and allows US investors to trade receipts instead of the underlying stock.
