There were high hopes when China and Switzerland unveiled a stock scheme linking the two countries in July 2022. Matching capital-hungry mainland corporates with capital-rich European investors via the medium of Switzerland-listed global depository receipts (GDRs) seemed a perfect match.
The plan sparked enthusiasm when first launched – and for good reason. Swiss-listed GDRs could offer foreign funds direct access to listed mainland corporates. In turn, they gave Chinese firms a chance to tap up global investors while swerving the need to sell shares in New York – a handy bonus given the threat of rising Sino-US tensions.
At first, the China-Switzerland Stock Connect looked like a hit.
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