Chinese global depository receipts made their debut on the Zurich-based SIX Swiss Exchange, marking a landmark trading link between the two countries.
Four Chinese firms made their debut on the SIX Swiss Exchange via global depository receipts (GDR) – certificates issued by custodian banks to represent China’s yuan-denominated A-shares. This follows a 2019 agreement made between China and Switzerland to establish the stock exchange scheme.
Under the current arrangement, each trading session of Chinese GDRs lasts less than three hours with a six-hour window for Chinese firms to make disclosures on both sides of the market. The original plans include an eastbound leg for European companies to list in China but there are no details on the timing of this launch.
The newly listed GDRs involved technology companies including recycled product operator GEM, industrial machinery maker Keda Industrial Group, lithium battery maker Ningbo Shanshan and rival Gotion High-tech.
Chinese Trading Links
China has been expanding its capital market trading links abroad via so-called «Stock Connect» schemes. In addition to Switzerland, a Shanghai-London Stock Connect program was launched in 2018 with GDRs issued by five Chinese firms while Beijing has proposed adding more of such channels to other European countries, including Germany.
But it is not all good news for China’s foreign channels of market trading, most notably in the US where companies face the risk of being delisted over an ongoing audit inspection dispute.
«Today we are celebrating a historic milestone in the excellent relationship that unites Chinese and Swiss financial markets. In the current, somewhat challenging market environment, both of our financial markets are demonstrating reliability and resilience,» said Thomas Zeeb, global head of exchanges at SIX Swiss Exchange.
