What’s new: Three Chinese companies are planning a listing in Switzerland, as Beijing tries to promote the interconnection of the Chinese and European stock markets.
The firms are engineering machinery maker Sany Heavy Industry Co. Ltd. (600031.SH), medical equipment manufacturer Lepu Medical Technology (Beijing) Co. Ltd. (300003.SZ) and new-energy vehicle battery maker Gotion High-tech Co. Ltd. (002074.SZ).
All three firms said that they are preparing to issue global depositary receipts (GDRs) on the SIX Swiss Exchange. None has received regulatory approval yet from China or Switzerland, according to their filings on Wednesday and Thursday.
The background: The three companies are the first ones seeking a European share sale through a stock connect program after China’s top securities regulator broadened it in February.
Launched in 2019, the program initially only linked the stock exchanges in Shanghai and London, allowing eligible companies listed on each bourse to sell depositary receipts on the other. This year’s expansion of the program incorporated the bourses in Shenzhen, Germany and Switzerland.
So far, four Chinese companies have issued GDRs through the program and raised capital on the London bourse, according to the China Securities Regulatory Commission.
Related: China to Broaden Stock Connect Program to Incorporate Swiss, German Exchanges
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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