CICC UK Becomes the First SZSE-Approved UK, Swiss and German GDR Cross-Border Conversion Institution and the First SSE-Approved Swiss GDR Cross-Border Conversion Institution Under the Stock Connect Schemes
On 11 July 2022, China International Capital Corporation Limited (CICC, 03908.HK, 601995.SH) announced that China International Capital Corporation (UK) Limited (CICC UK) has been approved by the Shenzhen Stock Exchange (SZSE) as a UK, Swiss and German Global Depositary Receipts (GDR) cross-border conversion institution, and by the Shanghai Stock Exchange (SSE) as a Swiss GDR cross-border conversion institution, under the SSE/SZSE stock connect schemes with overseas stock exchanges. This was on the back of CICC UK recently becoming a member of the SIX Swiss Exchange (SIX) and the Frankfurt Stock Exchange (FWB) in addition to its membership of the London Stock Exchange (LSE).
In February 2022, the China Securities Regulatory Commission issued the “Provisions on the Supervision and Administration of Depository Receipts under the Stock Connect Scheme between Domestic and Overseas Stock Exchange”. This marked a significant expansion of the original stock connect scheme between the SSE and the LSE to include companies listed on the SZSE, as well as capital markets in Germany and Switzerland, and signalled China’s determination to open up its capital markets further. The expanded stock connect schemes broaden the channels for international capital to enter the Chinese capital markets and vice versa.
Xinhan Xia, CEO of CICC UK, said, “CICC leads the participation in the expanded stock connect schemes by becoming an approved GDR cross-border conversion institution connecting the UK, Swiss and German stock exchanges, after it became as the first approved Shanghai-London Stock Connect GDR UK cross-border conversion institution in December 2018. CICC continues to achieve significant milestones on its journey of internationalisation, making practical contributions to the deepening of cooperation with Europe, and serving as the leading Chinese financial institution in building new bridges between China and the world’s top financial centres.”
CICC UK was established in 2009 and is regulated by the UK Financial Conduct Authority. It provides a central platform from which CICC facilitates cross-border investment and financing services for an increasing number of clients from Europe, the Middle East and Africa that do business with China and from China seeking cross-border investments in and financing from these regions. CICC UK was the first Chinese member of the LSE and SIX and the first Chinese investment bank member of the FWB.