China and Switzerland have completed another part of their tie-up on a joint stock trading and listing platform.
The last stage, part of a project started in 2019 by Swiss stock exchange SIX and the Shanghai and Shenzhen stock exchanges, saw the establishment of the Swiss part of the operation.
The platform, Stock Connect, provides a cross-listing framework that enables companies to raise capital by issuing and listing Global Depositary Receipts (GDRs) on SIX and Chinese Depositary Receipts on Chinese stock exchanges.
Four Chinese companies active in clean energy and battery technology are listing GDRs on SIS: Keda Industrial Group Co. LtdGEM Co Ltd, Gotion High-tech Co Ltd and Ningbo Shanshan Co Ltd, in trading starting on Thursday after a new regulatory regime took effect this week.
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“With these revised SIX listing rules, SIX offers an alternative listing segment that is competitive with other financial centers and, at the same time, does not allow less stringent obligations that could be negative from the point of view of investor protection” , the exchange said. he said in a statement.
The Swiss government last year gave its stamp of approval to the Chinese audit supervisory authority to facilitate cooperation between Swiss and Chinese stock exchanges.
Neutral Switzerland has downplayed the prospect of Western sanctions against China over its human rights record as Bern pursues a “special path” with Beijing, a major trading partner.
In 1950 Switzerland was one of the first Western countries to recognize Communist China. As of 2010, China is its largest trading partner in Asia and the third largest globally after the European Union and the United States.
A bilateral free trade agreement entered into force in July 2014.
Reuters with additional editing by Sean O’Meara
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Sean O’Meara is editor of Asia Financial. He has been a journalist for over 30 years, working on local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.