Raising Capital in Asia: the China ADR market

Since JPMorgan first invented the American Depositary Receipt (ADR) in 1927, it has enabled non-UScompanies to realize the great capital-raising potential of having a USlisting. In October 1993, the first Chinese company to adopt the ADR route raised some $170 million with a listing on the New York Stock Exchange (NYSE). In the time since, Chinese companies have gone on to raise more than $7 billion through the issuance of ADRs in the USmarket.