China's securities regulator is reportedly currently holding back approvals for new applications to sell global depository receipts (GDRs), which could potentially halt a lucrative stream of listings in Europe. One reason for the pause is the regulator's worry that a significant proportion of GDR issuance is being snapped up by Chinese investors, who later convert the securities into shares in their home market to make money from the persistent price gaps. The majority of these GDRs are listed in Zurich, where they tend to trade at discounts, and become interchangeable with A-shares in mainland China after 120 days. Although the China Securities Regulatory Commission said last month that it is considering new rules for these offerings, it has yet to disclose details or comment on the speed of approvals. The regulator is currently deciding which of the country's watchdogs will approve the listings and whether to scrutinise investors participating in the deals more closely, Bloomberg reported.