(AWP) Three Chinese companies are already flirting with a secondary listing in Switzerland. Their aim is to attract investors from abroad. The easing planned by the Chinese securities regulator makes this step possible.
Sany Heavy Industry, one of the largest construction machinery manufacturers in China, had already disclosed its plans on Tuesday. The company has more than 40,000 employees.
Guoxuan High-Tech and Lepu Medical followed on Wednesday. The former specializes in the development, production and marketing of lithium batteries and power transmission systems. Lepu Medical manufactures medical devices such as rapid antigen test kits.
The shares of the companies mentioned are to be listed as Global Depository Receipts (GDR) on the SIX Swiss Exchange, according to the respective media releases. Sany’s main market is Shanghai Stock Exchange, Guoxuan and Lepu are listed on Shenzhen Stock Exchange.
None of the companies gave financial details or the time of the listing. All three are pursuing an internationalization of their business, it was only said.
First China company in Switzerland
If the listing works, Sany, Guoxuan or Lepu could become the first Chinese company to be traded in Switzerland as part of an expanded cross-border listing program.
China is expanding its cross-border listing program in Europe to attract more foreign capital to its markets.
In mid-February, the Chinese securities regulator CSRC announced that the so-called “Stock Connect” program should also be extended to the stock exchanges in Switzerland and Germany. So far it only applies to the London Stock Exchange.
Swiss stock exchange is ready
In any case, the Swiss stock exchange is already in the starting blocks. “Everything is ready on our side,” said SIX spokesman Jürg Schneider to the AWP news agency. However, before the listing is ready, the CSRC’s plans still have to be approved by the local committees.
The Swiss stock exchange would not even have to set up a new trading segment. “The GDR Listing Segment has existed since 2007 – it has just never been used before,” said SIX spokesman Schneider.
Global Depository Receipts are depositary receipts developed along the lines of American Depository Receipts (ADR), which certify ownership of shares. A GDR can relate to one, several or just a fraction of shares. GDRs are traded on exchanges worldwide as a proxy for the original stock.