China-Switzerland Stock Connect Launches07.29.2022
GEM, Gotion High-tech, Keda Industrial Group and Ningbo Shanshan became the first Chinese companies to list GDRs on SIX Swiss Exchange. The listings are part of the newly launched China-Switzerland Stock Connect program.
Since signing the Memoranda of Understanding in 2019, SIX has been working closely with Shanghai and Shenzhen Stock Exchanges to establish a China-Switzerland Stock Connect offering. Today, the first Chinese companies listed their Global Depository Receipts (GDRs) on SIX Swiss Exchange.
— SIX (@sixgroup) July 28, 2022
In order for Chinese companies to list GDRs in Switzerland, the existing regulatory framework for GDRs was reviewed, amended and entered into force on 25 July 2022. In the separately established trading segment for GDRs, shortened trading hours between 3 p.m. and 5.40 p.m. apply.
Capital raised by the four companies (aggregated placement volume in USD) with their GDRs from investors totals USD 1.6 billion.
About GEM’s GDR Listing
This Shenzhen Stock Exchange listed company is active in the urban mining and new energy materials industry. With 31’002’500 GDRs listed (incl. over-allotment) at an issue price of USD 12.28 per GDR, the placement volume was USD 381 million. Each GDR represents 10 A-shares.
About Gotion High-tech’s GDR Listing
This Shenzhen Stock Exchange listed company, which focuses on battery power technology research, development and innovation, listed 22’833’400 GDRs at an issue price of USD 30.00 per GDR. This resulted in a placement volume of USD 685 million. Each GDR represents 5 A-shares.
About Keda Industrial Group’s GDR Listing
This Shanghai Stock Exchange listed building materials machinery manufacturer with activities in the area of clean energy, among others, sold 12’000’000 GDRs at an issue price of USD 14.43 per GDR, resulting in a placement volume of USD 173 million. Each GDR represents 5 A-shares.
About Ningbo Shanshan’s GDRs Listing
This Shanghai Stock Exchange listed company engaged in the research and development, manufacture and distribution of lithium battery materials, placed 15’442’300 GDRs at an issue price of USD 20.64 per GDR, which resulted in a placement volume of USD 319 million. Each GDR represents 5 A-shares.
Thomas Zeeb, Global Head Exchanges and Member of the Group Executive Board, SIX, emphasizes: “Today is a great day in many respects and the long-standing and excellent cooperation of the Chinese and Swiss financial markets has reached an important milestone. It is a great pleasure for me to welcome four Chinese companies to SIX as part of the China-Switzerland Stock Connect program. This reflects the global significance of the Swiss financial center and its outstanding international connections. I wish the newcomers only the best for the future and I am convinced that they will find the best conditions with us to be able to achieve their future goals”.
With Zoe Zhang and Richard Knight, Execution Quant Group, CLSA
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