Imagine your cross-border business soaring with new wings, no longer constrained by domestic financing channels but free to access the vast international capital markets. This is no longer a dream but a reality taking shape before our eyes. GreatStar, a leading cross-border e-commerce tool manufacturer, has taken the first crucial step.
Breaking News: GreatStar's GDR Application Accepted, Targeting Swiss Stock Exchange
On the evening of September 21, an announcement sent shockwaves through the cross-border e-commerce industry: GreatStar's application to issue Global Depository Receipts (GDR) has been accepted by China's Securities Regulatory Commission. This development means GreatStar is poised to list on the Swiss Stock Exchange, embarking on a "secondary listing" journey that opens doors to international financing opportunities.
GDR: The Golden Key to Cross-Border E-Commerce Financing
What exactly is GDR? Simply put, it serves as a "golden key" that helps domestic companies unlock overseas financing opportunities. Global Depository Receipts (GDRs) represent shares or bonds that can be traded across multiple global financial markets. For companies already listed domestically, issuing GDRs effectively creates a secondary listing abroad, significantly expanding financing channels and attracting international capital.
Policy Tailwinds: China-Swiss Market Connectivity Mechanism Launched
This significant move didn't occur in isolation but rather builds on strong policy support. As early as February 11, China's securities regulator released new rules incorporating eligible Shenzhen-listed companies into the "interconnectivity mechanism between domestic and foreign capital markets," extending coverage to European markets including Switzerland and Germany. On July 28, the China-Swiss securities market connect depository receipt business officially launched, paving the way for domestic companies to issue GDRs on the Swiss Exchange.
Why Switzerland? Three Advantages Driving Overseas Expansion
Why are companies increasingly choosing Switzerland as their preferred overseas listing destination? Three key reasons stand out:
- Established Financial Hub: As the world's largest offshore financial center, Switzerland boasts a long financial history and stable market environment, providing reliable financing security for businesses.
- Open and Fair Market: Known for its transparency and equity, the Swiss market creates favorable competitive conditions that help companies achieve fair valuations.
- Streamlined Listing Process: Compared to other overseas markets, issuing GDRs on the Swiss Exchange proves remarkably efficient. The entire process—from project initiation to official listing—can be completed in as little as two months, significantly reducing financing timelines.
Listing Requirements: Starting at RMB 20 Billion Market Cap
However, issuing GDRs on the Swiss Exchange isn't without its challenges. Companies must meet specific criteria, including:
- Existing listing on Shanghai or Shenzhen stock exchanges
- Market capitalization no less than RMB 20 billion
- Minimum three years of continuous operation
- Minimum share capital of CHF 25 million on the first trading day
Cross-Border E-Commerce IPO Wave: Paving the Way for Overseas Financing
The acceptance of GreatStar's GDR application has injected new confidence into the cross-border e-commerce sector. Industry experts anticipate a growing trend of companies opting for overseas GDR issuance to raise capital and expand international operations. Concurrently, more cross-border e-commerce firms are expected to pursue IPO paths as preparation for global financing.
Seizing the Opportunity: Embracing a New Era of Cross-Border Financing
For cross-border sellers, this development represents a golden opportunity. Overseas financing provides access to capital for product development, market expansion, and brand building—ultimately enhancing competitiveness and profitability. The time to act is now, as businesses position themselves to capitalize on this new chapter in cross-border e-commerce financing.