Keda Industrial, Gen, Gotion High-Tech and Ningbo Shanshan, all four active in the energy technology and recycling sectors, issued certificates of deposit worth $1.5 billion between Friday and Monday.
The certificates of deposit (GDR) of the first four Chinese companies to have benefited from the so-called “China-Switzerland Stock Connect” agreement will be able to be traded on the Swiss Stock Exchange SIX from Thursday at 3 p.m., on the specific trading segment set up room for the occasion.
The launch of the Swiss part of the agreement gave rise to a ceremony on Thursday at the Swiss Stock Exchange in the presence of Swiss and Chinese officials, SIX said in a statement on Thursday.
GDR trading will now be possible between 3 p.m. and 5:40 p.m.
As a reminder, the companies from beyond the Great Wall Keda Industrial, Gen, Gotion High-Tech and Ningbo Shanshan, all four active in the energy technology and recycling sectors, issued certificates of deposit worth 1.5 billion dollars between Friday and Monday.
Certificates of deposit, or GDR (“global depositary receipts”), correspond to shares listed on the Shanghai or Shenzhen stock exchanges and deposited in Chinese banks.
Companies issuing GDRs are subject to the obligation to publish ad hoc information, such as financial reports and management transactions. Within the meaning of the Ordinance on Financial Market Infrastructures (OIMF), GDRs are not, however, considered to be listed on a principal basis, underlines SIX.
Last Friday, Finma, the Swiss financial market supervisory authority, gave the green light to the 2Stock Connect mechanism”. Zurich is the second stock exchange to offer a secondary listing to Chinese companies, following London. The GDR rating segment of the SIX already exists since 2007, but had never been used until now.
China also plans to extend the “Stock Connect” program to Germany.
