Global depositary receipts of Chinese companies on SIX

Read the PDF edition (2 pages)

The China–Switzerland Stock Connect, launched in 2022, allows companies listed on the Shanghai or Shenzhen stock exchanges to issue global depositary receipts (GDRs) and list them on SIX Swiss Exchange. For mainland issuers it opens a route to European capital and investor visibility without a full second listing of their A-shares.

How a GDR works

A GDR is a negotiable certificate issued by a depositary bank which represents a specific number of underlying shares of the issuer. In the Stock Connect structure, the underlying A-shares are newly issued and held by the depositary through a custodian in mainland China, and the GDRs are traded on SIX in a currency chosen for the programme. Conversion between GDRs and A-shares is possible under conditions set by the Chinese rules, including restrictions during an initial period.

Approvals in China and Switzerland

The issuer needs to complete the procedures required by the China Securities Regulatory Commission and the relevant mainland exchange before launching the offering. On the Swiss side, SIX applies a dedicated regulatory standard for depositary receipts, and the prospectus must be approved by a Swiss review body under the Financial Services Act. The Chinese and Swiss procedures have to be coordinated in timing and content, because investors and regulators in both markets will compare the disclosures.

Disclosure and ongoing obligations

After listing, the issuer remains subject to the regulatory regime of its home market and must also comply with the SIX rules applicable to depositary receipts, including ad hoc publicity and periodic reporting. Information released in China must reach Swiss investors at the same time and with the same content. The Swiss rules on market abuse apply to trading in the GDRs.

Practical considerations

The Chinese framework for overseas GDR issues has been amended since its introduction, and its scope and conditions may change again. Issuers should therefore verify the current eligibility criteria, size limits and lock-up rules at the time of planning. Investor demand, the choice of depositary and the cost of a dual compliance regime should be assessed realistically before the board commits.

What pays off in practice

Synchronise the timetables. Chinese approvals and the Swiss prospectus review must be aligned from the outset.
Align disclosure processes. One release procedure for both markets avoids inconsistent information.
Brief the board on Swiss market abuse rules. Directors and staff trading in the issuer's securities must understand the Swiss regime as well.

How Ressos Legal helps

I advise mainland Chinese issuers and their advisers on the Swiss legal side of a GDR listing on SIX, from the prospectus to ongoing compliance, and work alongside their PRC counsel. Contact me for a first conversation.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

English

Contact

Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →