The SIX Swiss Exchange offers since 2007 the listing of Global Depository Receipts (GDRs) and has reviewed its framework in July 2022. GDRs represent shares of a company that are deposited in the company’s country. These are therefore tradable securities issued by a bank.
From now on, Chinese companies listed with A-shares at the Shanghai and Shenzhen stock exchanges can be listed at the SIX through GDRs. This stock connect system is reciprocal and allows Swiss companies to be listed in China through the GDR vehicle as well.
Investors are now able to invest in Chinese companies and access Chinese A-Shares which were hardly accessible in the past. On the other hand, Chinese companies benefit from a larger investor pool to raise capital. Large companies such as Ningbo Shanshan and Keda Industrial Group are already listed at the SIX.
At a regulatory level, companies listing GDRs are subject to ad hoc publicity, financial reporting, and the disclosure of management transactions. For Chinese companies, the Accounting Standard of the People’s Republic of China is accepted by the SIX Swiss Exchange.