The China Securities Regulatory Commission has opened the gate for China issuers to list in Switzerland. The regulators attempted to tighten the European market ties with China-Swiss through Shanghai-London Stock Connect. However, some bankers are uncertain about this opportunity. Another banker argued that he could not understand the synergy for Chinese companies listing in Switzerland. It is simply because Switzerland is having a smaller exchange compared with London.
This is the reason why the banker is uncertain that the Swiss investors would see it as interesting in the deals since no Chinese companies are listed here. On the other hand, it is hard to decide the continuity of GDR deals since it is still pitching. Meanwhile, China has seen potential compared to some rival markets. Actually, the relationship between China and the UK has not been good in recent years.
The UK has voiced about the human rights issues in Xinjiang and Hong Kong. In Germany however, there has also been a stock market link. The finance minister argued last month that the country needs to reduce economic dependence on Chinaas soon as possible due to the Xinjiang issue. In this case, China has denied the human rights violations in Xinjiang. Among the nine candidates, five have already delivered the file to Swiss GDR plans with the CSRC.
These companies are the lithium-ion battery materials maker Ningbo Shanshan, Keda, Lepu Medical Technology, the medical equipment maker, Gotion High Tech and GEM. These deals would hit the market probably around June and July. The timetable of the deals depend on the progress talks between China-Swiss. The two countries are planning to upgrade their free trade agreement.
