Linklaters advised on the successful listings for Ningbo Shanshan Co. Ltd. (Ningbo Shanshan), Keda Industrial Group Co. Ltd. (Keda), GEM Co. Ltd. (GEM) and Gotion High-tech Co. Ltd. (Gotion) on the SIX Swiss Exchange on 28 July 2022 in the form of global depository receipts (GDRs). Raising a total of US$ 1.5 billion, these four companies are the first A-share listed companies to list on the SIX Swiss Exchange through China-Swiss Connect, which is an important milestone for Chinese companies going abroad to Switzerland through the “Interconnection Mechanism”. Linklaters also assisted Citi in communicating with the SIX Swiss Exchange on the depositary proposal for the “China-Switzerland Stock Connect”.
Linklaters provided legal support to the SIX Swiss Exchange on its amendments to the Listing Rules, which came into effect on 25 July 2022, paving the way for the listing of A-share listed companies on the SIX Swiss Exchange in the form of GDRs. Three days later, the firm assisted Ningbo Shanshan, Keda, GEM and Gotion in completing their GDR listings, as the first batch of A-share listed companies listed on the SIX Swiss Exchange through the “China-Switzerland Stock Connect”. The firm’s roles on the four listings included advising:
- Ningbo Shanshan as the issuer on its US$319m listing. Listed on the Shanghai Stock Exchange, Ningbo Shanshan is a leading global advanced material manufacturer, dedicated to the design, development, manufacturing and sales of lithium-ion battery materials and polarisers it has a market leading position in the anode materials and polarisers industry.
- the underwriters China International Capital Corporation (UK) Limited and China International Capital Corporation Hong Kong Securities Limited as underwriters on Keda’s US$173m listing. Keda, which is listed on the Shanghai Stock Exchange, is the largest and second largest supplier of building ceramic machinery and equipment in Asia and the world, respectively.
- Citi, as the depositary, on GEM’s US$346m listing. Listed on the Shenzhen Stock Exchange, GEM is a pioneer of exploiting urban mines in China and a global leader in the cemented carbide material and new energy material industries.
- Citi, as the depositary, on Gotion’s US$685m listing. Gotion, which is listed on the Shenzhen Stock Exchange, is an energy solution company that specialises in power batteries for new energy vehicles with a focus on research, development and innovation.
Linklaters has previously participated in the issuance and listing of all four GDRs through the “Shanghai-London Stock Connect” in various roles. After the implementation of CSRC’s new rules on depository receipts under the Stock Connect Scheme between domestic and overseas stock exchanges came into effect in early 2022, the firm advised Ming Yang Smart Energy Group Limited in completing its GDR listing on the London Stock Exchange, marking is the first GDR listing of an A-share listed privately owned company.
Linklaters’ participation in the Swiss listings of Ningbo Shanshan, Keda, GEM and Gotion and advising Citi in the implementation of the GDR depositary programme demonstrates the firm’s strength in advising on GDR listings through the “China-Switzerland Stock Connect” programme. Linklaters has been involved in all GDR listing projects in the market and has rich experience and a unique position in advising on GDR listings.
The Linklaters team was led by corporate partner John Xu and capital markets partners Iris Leung, Lipton Li and Neil Pallender.
