On the evening of September 21, Hangzhou Great Star Industrial Co., Ltd., a leading Chinese hand tool manufacturer, announced that its application for Global Depository Receipts (GDR) listing on the SIX Swiss Exchange had been accepted by China's securities regulator. This move marks a significant step in the company's overseas financing journey and signals new opportunities for Chinese enterprises seeking foreign capital.
GDR: Bridging Domestic and International Capital Markets
Global Depository Receipts (GDR) represent securities that can be traded across multiple global financial markets. For companies already listed domestically, issuing GDRs effectively creates a "secondary listing" overseas, expanding financing channels and attracting international investors.
China's securities watchdog released new regulations on February 11 governing the cross-border depository receipt business between domestic and foreign exchanges. These rules expanded the program to include eligible companies listed on the Shenzhen Stock Exchange and added Switzerland and Germany as approved overseas markets. The China-Switzerland stock connect program officially launched on July 28, opening doors for domestic companies to access European capital markets.
SIX Swiss Exchange: A Preferred Listing Destination
Switzerland, as one of the world's largest offshore financial centers, boasts a mature and stable financial market. The SIX Swiss Exchange has attracted numerous Chinese companies with its open, fair market environment and relatively streamlined GDR issuance process.
The exchange's listing requirements mandate that GDR issuers must meet several criteria: existing listings on either the Shanghai or Shenzhen stock exchanges, a market capitalization no less than 20 billion yuan (approximately $2.8 billion), at least three years of continuous operation, and minimum share capital of 25 million Swiss francs ($25.6 million) on the first trading day.
Notably, the GDR issuance process at SIX is remarkably efficient. Based on previous listings, the entire process from project initiation to official listing can be completed in as little as two months, with no case exceeding four months—significantly reducing financing timelines for companies.
Great Star: A Pioneer in Cross-Border E-Commerce Expansion
As a leader in cross-border e-commerce, Great Star's preparation for GDR issuance in Switzerland carries important symbolic significance. The company stands to leverage international capital markets to further expand its global presence and enhance brand recognition.
Regulatory filings show that China's securities authorities have reviewed Great Star's application materials and determined them to be complete, approving the application for administrative licensing.
New Trends in Chinese Companies' Overseas Financing
Beyond Great Star, several other Chinese listed companies announced plans in September to issue GDRs on the Swiss exchange, including Sunwoda Electronic, Dongpeng Beverage, and Lepu Medical. This phenomenon indicates that Chinese enterprises are actively exploring overseas financing channels to meet development needs.
Industry analysts anticipate more companies will opt for overseas GDR issuances to raise capital, with increasing numbers of cross-border e-commerce firms preparing for IPOs. This trend promises to provide stronger financial support for Chinese companies going global and help them achieve greater international success.
As the China-Switzerland stock connect program deepens and more companies successfully list in Switzerland, the gateway for Chinese enterprises to access overseas financing continues to widen—potentially injecting new vitality into China's economic transformation and high-quality development.
How Can Cross-Border E-Commerce Companies Seize the Opportunity?
For cross-border e-commerce businesses, capitalizing on overseas financing opportunities is crucial. Companies should thoroughly understand foreign capital market regulations and requirements, prepare adequately, and select appropriate listing locations and issuance methods. Simultaneously, they must strengthen compliance management and improve information disclosure quality to earn international investors' trust.
Additionally, businesses should focus on brand building and market expansion to enhance international competitiveness. Only with strong capabilities and solid reputations can companies secure greater support in global capital markets and achieve sustainable development.
In summary, Great Star's preparations for a Swiss listing represent an important signal in Chinese companies' overseas financing landscape. Cross-border e-commerce enterprises should actively explore international financing channels to power their globalization strategies.