Photo shows the launch ceremony of China-Switzerland Stock Connect program held on July 28, 2022. (Photo provided by the CSRC)
BEIJING, July 29 (Xinhua) -- Upon the launch of China-Switzerland Stock Connect(CSRC) program by China Securities Regulatory Commission (CSRC) and Swiss Federal Department of Finance on Thursday, four listed Chinese companies went listing on the Swiss Exchange (SIX) with global depository receipts (GDR) issuance on the same day.
The CSRC program is taken as an effective approach to broadening channels for cross-border financing and investment and deepening Sino-Swiss cooperation in the financial area. It enables Chinese A-share listed companies to issue GDR on the SIX.
As the first batch of Chinese listed companies listed on SIX, the four companies are KEDA Industrial Group Co., Ltd., Ningbo Shanshan Co., Ltd., GEM Co. Ltd., and Gotion High-tech Co., Ltd.
KEDA Industrial Group, a listed company on the Shanghai Stock Exchange (SSE), aimed to raise 173 million U.S. dollar through GDR issuance with the price set at 14.43 U.S. dollars, while the listing of another SSE-listed company Ningbo Shanshan Co., Ltd. planned to raise 319 million U.S. dollars with GDR price set at 20.64 U.S. dollars.
GEM and Gotion High-tech, listed companies on the Shenzhen Stock Exchange, will raise 381 million U.S. dollars with single GDR price of 12.28 U.S. dollars and 6.85 million U.S. dollars with single GDR price of 30 U.S. dollars per GDR, respectively.
It is learned that the SIX has set up GDR listing and trading department to improve the securities’ exposure and tradability. Citi is the depository bank for the four GDR projects.
John Xu, Partner at the global law firm Linklaters, said that the launch of the program would extend Chinese listed companies' financing channels and help them to better integrate into the global market.
He added that this move also urges companies to improve corporate governance, and thus boosting foreign investors’ confidence in Chinese enterprises.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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