ZURICH, Switzerland, Feb. 2 (Xinhua) — The initial public offerings (IPOs) of Chinese companies in Switzerland will provide a further boost for capital market cooperation between the two countries, said the CEO of Swiss stock exchange operator SIX Group.
It comes as the China-Switzerland Stock Connect, created by SIX and the Shanghai and Shenzhen stock exchanges, was launched on July 28 last year.
“We have been working on this for many years and things have then really accelerated last year and everything was approved in July,” Jos Dijsselhof told Xinhua at the company’s headquarters in Zurich.
“On the first day, we saw four Chinese companies applying for IPO, and we’ve seen in total nine companies coming to the Swiss market in 2022,” said Dijsselhof, noting that these IPOs will broaden cross-border financing channels and investment between the two countries.
In April 2019, SIX and the Shanghai Stock Exchange renewed their Memorandum of Understanding to further deepen collaboration, initiated in 2015.
In October of the same year, SIX and the Shenzhen Stock Exchange signed their own memorandum to connect investors and companies in both countries on a larger scale.
“It’s a big success and clearly a testament that the Swiss market is a strong international market. Chinese services and manufacturing companies looking to grow their business and invest in Europe can come to Switzerland, raise capital here and also gain visibility,” said Dijsselhof.
“More than 30 Chinese companies have expressed interest in coming to the Swiss market. We’re very bullish and very happy that these companies have an interest to come here. We are very positive about this development,” he said.
When asked about his outlook for the Chinese market performance and macroeconomy in 2023, the executive said that the adjustment of China’s pandemic response measures will get manufacturing, distribution and logistics running again, which is a “good thing for China and the whole world.”
Switzerland is known worldwide for being a top center for asset management, insurance and commodities trading. The financial sector is a cornerstone of the Swiss economy and generates around 10 percent of gross domestic product.
SIX operates and develops infrastructure services for the Swiss and Spanish stock exchanges, for post-trade services, banking services and financial information.
The company is owned by its users, currently some 120 banks. With a workforce of 3,685 employees and a presence in 20 countries, it generated an operating income of 1.5 billion Swiss francs (1.65 billion U.S. dollars) and a net profit of 73.5 million Swiss francs (80 million dollars) in 2021.