SIX Officially Launches the Swiss GDRs-leg of the China-Switzerland Stock Connect Together With Shanghai and Shenzhen Stock Exchanges
by swisschambei in Business
SIX officially launched the Swiss GDR-leg of the China-Switzerland Stock Connect with the participation of senior government representatives from China and Switzerland. In addition to the official launch celebrations, the first Chinese companies aim to list their Global Depository Receipts GDRs this afternoon and trading is expected to start in the newly established GDR trading segment on SIX Swiss Exchange. Since signing the Memoranda of Understanding (MoU) in 2019, SIX has been working closely with the Shanghai and Shenzhen Stock Exchanges to establish a Stock Connect offering that is equally accessible for Chinese and Swiss market participants. Stock Connect, which provides a cross-listing framework between Chinese and Swiss exchanges, allows companies from each market to access investor pools in the other market and raise capital by issuing and listing GDRs on SIX Swiss Exchange and Chinese Depository Receipts on the Chinese exchanges. Stock Connect is another important step for the Chinese financial sector in opening up bringing the capital markets of China and Switzerland even closer together. At the same time, it will offer new attractive opportunities to investors as well as companies in both countries.