SIX launches Swiss GDR-leg of China-Switzerland Stock Connect
29 July 2022 Switzerland
Image: sdecoret/stock.adobe.com
SIX has announced the launch of the Swiss GDR-leg of the China-Switzerland Stock Connect with Shanghai and Shenzhen stock exchanges.
Since signing a Memoranda of Understanding (MoU) in 2019, SIX has been working closely with the Shanghai and Shenzhen stock exchanges to establish a GDR Stock Connect offering that is equally accessible for Chinese and Swiss market participants.
This will provide a cross-listing framework between Chinese and Swiss exchanges, allowing 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.
The service aims to bring the capital markets of China and Switzerland closer together, offering new opportunities to investors and companies in both countries.
Speaking on the announcement, Jos Dijsselhof, CEO at SIX, comments: “With the introduction of GDRs, we are excited to be able to broaden the options for companies to raise capital in the very international Swiss financial market.
“We can now offer further investment opportunities to investors looking to get direct exposure to Chinese securities in a familiar and secure regulatory environment.”
This development follows the announcement of Swap Connect earlier this month, based on a collaboration between Hong Kong Exchanges and Clearing Limited (HKEX), the China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH).This will create a mutual access programme for interbank interest rate swap (IRS) markets in Hong Kong and the Chinese mainland.
Since signing a Memoranda of Understanding (MoU) in 2019, SIX has been working closely with the Shanghai and Shenzhen stock exchanges to establish a GDR Stock Connect offering that is equally accessible for Chinese and Swiss market participants.
This will provide a cross-listing framework between Chinese and Swiss exchanges, allowing 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.
The service aims to bring the capital markets of China and Switzerland closer together, offering new opportunities to investors and companies in both countries.
Speaking on the announcement, Jos Dijsselhof, CEO at SIX, comments: “With the introduction of GDRs, we are excited to be able to broaden the options for companies to raise capital in the very international Swiss financial market.
“We can now offer further investment opportunities to investors looking to get direct exposure to Chinese securities in a familiar and secure regulatory environment.”
This development follows the announcement of Swap Connect earlier this month, based on a collaboration between Hong Kong Exchanges and Clearing Limited (HKEX), the China Foreign Exchange Trade System (CFETS) and Shanghai Clearing House (SHCH).This will create a mutual access programme for interbank interest rate swap (IRS) markets in Hong Kong and the Chinese mainland.
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