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Chinese companies to get secondary listing on Zurich stock exchange

Swiss Stock Exchange
Several Chinese companies have received approval for a listing. © Keystone / Christian Beutler

Approved Chinese companies will have a secondary listing on the Swiss stock exchange from Monday after financial regulator FINMA gave a green light.

The mechanism called “China-Swiss Stock Connect” allows Chinese companies that have received authorisation to issue global depositary receipts (GDRs), which will be traded on the Swiss stock exchange. The corresponding shares will be deposited with a Chinese bank, the SIX Swiss Exchange said in a statement on Friday.

Several Chinese companies have received approval from SIX, reports business news agency AWP. They include lithium battery company Gotion High-Tech, building materials group Keda Industrial, Gem and Ningbo Shanshan which are also active in batteries.

The mechanism also provides the possibility for companies listed in Switzerland to issue GDRs in China on the Shanghai and Shenzhen stock exchanges.

The GDR listings offer a sought-after opportunity for Chinese companies to raise funds overseas, as US listings have been frozen amid heightened geopolitical tensions, according to Bloomberg, while volatility in Hong Kong this year is giving issuers second thoughts about the market.

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