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On July 28, Shenzhen Stock Exchange (SZSE) and SIX Swiss Exchange (SIX) jointly held the listing ceremony for the first batch of global depository receipts (GDRs) under the Stock Connect scheme between China and Switzerland via video link. The GDRs issued by two SZSE-listed companies, GEM Co., Ltd. (GEM) and Gotion High-tech Co., Ltd. (Gotion), were successfully listed on the SIX.
H.E. Mr. Wang Shiting, Chinese ambassador to Switzerland, Mr. He Jie, Director of the Financial Regulatory Bureau of Shenzhen Municipality, Mr. Thomas Zeeb, Member of the Executive Board and Global Head Exchanges of SIX Group, Ms. Tang Rui, Vice President of SZSE, Mr. Lu Shixiong, deputy general manager of China Securities Depository and Clearing Co. Ltd. Shenzhen Branch (CSDC), and representitives from the SZSE issuers and intermediaries attended the ceremony and delivered speeches in Shenzhen and Switzerland respectively.
The launch of Shenzhen-Switzerland Stock Connect is an important step of SZSE to implement the strategic deployment of the CPC Central Committee and the State Council on further opening up the financial market and to promote and deepen mutually beneficial cooperation between China and EU capital markets. It is also a useful practice to facilitate mutual recognition of Chinese and Swiss market systems and help enterprises make use of both domestic and international markets and resources to enhance corporate performance and strength in full compliance with laws and regulations, and is therefore seen as a major landmark move.
Under the unified leadership of China Securities Regulatory Commission (CSRC), SZSE has long been studying and exploring cooperation with overseas markets on depository receipts. In 2019, SZSE and SIX jointly held two-way market promotion activities. At the end of 2021, the Shanghai-London Stock Connect expanded westwards to Switzerland and Germany and eastwards to SZSE. Subsequently, SZSE, together with CSDC, listed companies, market institutions and other relevant parties, completed all the preparatory work of rules, business, technology and market in an efficient and orderly manner, and, in collaboration with SIX, jointly held several special road shows in China and Switzerland, laying a solid foundation for the launch of Shenzhen-Switzerland Stock Connect. At the launch ceremony held on July 28, SZSE and SIX signed a supplementary MOU. The two sides will further strengthen joint market cultivation services, continue to optimize and improve mechanism arrangements, and jointly promote the smooth, safe and efficient operation of Shenzhen-Switzerland Stock Connect.
GEM and Gotion are from SZSE's featured industries such as low-carbon, environmental protection and new energy, reflecting the cluster effect of SZSE’s low-carbon sustainable industries. SZSE has always been actively practicing the concept of sustainable development. It has given full play to its role as market hub to provide direct financing support for the development of low-carbon sustainable industries. Currently, there are more than 270 SZSE-listed companies engaged in green industries, with total market capitalization of RMB 6 trillion and representing nearly 20% of that of all the listed companies on SZSE. Through IPO, GEM raised USD 346 million; and Gotion raised USD 685 million, making the SIX’s biggest IPOs this year.
Next, according to the arrangement and requirements of the CSRC, SZSE will continue to supervise and serve the depository receipts business under the Stock Connect scheme, support qualified SZSE listed companies in fund-raising and develop business in overseas market, broaden and deepen mutual connectivity in an orderly manner, promote the institutional and systematic opening-up of the capital market, constantly enhance the capital market’s abilities to allocate resources on a global scale, serve the real economy, and accelerate the construction of a high-quality innovation capital center and a world-class exchange, so as to better serve the creation of a new development paradigm and high-quality development.
