China-Switzerland Stock Connect goes Live: NKF acts on all four inaugural GDR issuances and listings on SIX Swiss Exchange

Niederer Kraft Frey has acted on each of the inaugural issuances of global depository receipts (GDRs) under the newly launched China-Switzerland Stock Connect programme, taking four Chinese companies public on SIX Swiss Exchange.

In this connection, NKF advised:

  • Gotion High-Tech Co., Ltd., a fast-growing global energy solutions company focused on the development of next generation battery technology, on its USD 685 million issuance of GDRs. Gotion is a leading global provider of lithium-ion batteries for the electrical vehicle market and a strategic technology partner of Volkswagen, its largest shareholder. The company’s A-Shares are listed on Shenzhen Stock Exchange.
  • The underwriters led by CLSA Limited as Sole Global Coordinator on the USD 346 million issuance of GDRs by GEM Co., Ltd., a global provider of new energy materials and urban mining with A-Shares listed on Shenzhen Stock Exchange.
  • The underwriters led by Huatai Financial Holdings (Hong Kong) Limited and Guotai Junan Securities (Hong Kong) Limited as Joint Global Coordinators on the USD 318 million issuance of GDRs by Ningbo Shanshan Co., Ltd, an advanced materials manufacturer dedicated to the development of lithium-ion battery materials and polarisers with A-Shares listed on Shanghai Stock Exchange.
  • The underwriters led by China International Capital Corporation (UK) Limited as Sole Global Coordinator on the USD 173 million issuance of GDRs by Keda Industrial Group Co., Ltd., a supplier of building materials and machinery with A-Shares listed on Shanghai Stock Exchange.

Trading in the GDRs on SIX Swiss Exchange commences today, on 28 July 2022.

China-Switzerland Stock Connect is a mutual access programme that allows companies listed on Shenzhen Stock Exchange and Shanghai Stock Exchange to list global depository receipts representing their domestic shares (A-Shares) on SIX Swiss Exchange. Launched on 22 July 2022, the program provides Chinese companies access to the Swiss capital market and allows international investors to access Chinese A-Shares from outside China. The China-Switzerland Stock Connect follows the introduction of the Shanghai-London Stock Connect programme in 2019.

The NKF team advising on the transactions comprised Corporate/Capital markets partner Philippe Weber, partner Daniel Bono, counsel Franziska Albers-Schönberg (both Capital Markets), senior associate Shu Bernet-Zhang (Corporate/Capital Markets), with the further involvement of partners Markus Kronauer (Tax), Bertrand Schott (Financial Regulation) and Lukas Beeler (Dispute Resolution).