China's regulatory authorities are waiting until the 16th Communist Party congress in September before deciding on a range of issues, including the long-awaited China Depositary Receipts (CDR), according to a mainland academic.
For more than a year, the CDR idea has been bandied around as a way of letting Hong Kong-listed red chips and H-shares issue depositary receipts on the Shanghai A-share market to raise funds.
Dean of Shanghai Jiaotong University School of Management, Chen Yamin said: 'Right now, nobody is talking about it. I just got back from the China Securities Regulatory Commission (CSRC) and no one is touching the CDR issue. Everybody is waiting until the party congress clarifies the direction.'
In addition to formally anointing China's next generation of leaders, the party congress will set the tone for a number of economic reforms and decide how much control mainland private enterprises and foreign enterprises will be allowed to have.
Apart from the CDR issue, Dr Chen said there were three other areas in which the CSRC and other regulatory authorities must issue amended regulations after the party congress meets.
First, the CSRC will need to issue a timetable for when foreign capital will be allowed to enter China's securities market.
A number of foreign brokerages have applied to the CSRC to trade yuan-denominated A shares, which are off limits to foreigners. But it is not known when the brokerages will be allowed entry to the A-share market.