14 law firms steer the first four Chinese companies into Swiss foray

0
72
Baker McKenzie steers the first four Chinese companies into Swiss foray

A group of 14 law firms have advised the first four A-listed companies – Keda Industrial Group, Ningbo Shanshan, GEM and Gotion High-tech – on trading global depository receipts (GDRs) on the SIX Swiss Exchange.

The quartet listed on 28 July after a new GDR scheme between China and Switzerland took effect earlier that day. The deals were the first of this type to apply the scheme since the China Securities Regulatory Commission expanded the China-Switzerland Stock Connect programme in February.

14 law firms steer the first four Chinese companies into Swiss foray Wang Hang
Wang Hang

The new energy vehicle battery maker Gotion High-tech has raised USD685 million, making it the largest share sale on the SIX to date this year. GEM, Ningbo Shanshan and Keda Industrial Group raised USD346 million, USD319 million and USD173 million, respectively.

For Gotion High-tech, Swiss law firm Niederer Kraft Frey, Clifford Chance and Llinks Law Offices acted as counsel while Baker McKenzie and Haiwen & Partners ascted as counsel to the underwriters, including CICC, Haitong International Securities, Huatai International, CLSA and ABCI. Linklaters acted as counsel to the depositary bank, Citibank.

Baker McKenzie and Kingson Law Firm acted as counsel for GEM, while Niederer Kraft Frey, Clifford Chance and Jingtian & Gongcheng had been counsel to the underwriters, including CLSA, BNP Paribas and Helvetische Bank. Linklaters acted as counsel to the depositary bank, Citibank.

Swiss law firm Vischer, Grandway Law Offices and Linklaters advised Ningbo Shanshan. Niederer Kraft Frey, Tian Yuan Law Firm and Clifford Chance advised the underwriters, including Huatai International, Guotai Junan Securities, CLSA and Haitong International Securities. Baker McKenzie acted as counsel to the depositary bank, Citibank.

In the case of Keda Industrial Group, Swiss law firm Advestra and Kangda Law Firm were advisers. Niederer Kraft Frey, King & Wood Mallesons and Linklaters advised underwriter CICC. Baker McKenzie acted as counsel to the depositary bank, Citibank.

Baker McKenzie’s Chinese team was led by Hong Kong-based partner Christina Lee and Beijing-based partner Wang Hang. Its Zurich team was led by partner Matthias Courvoisier, while the London team was led by partners Adam Farlow and Simon Porter.

Clifford Chance’s team was led by China Co-Managing Partner Tim Wang and partners Fang Liu and Jean Thio, with support from London-based partner Christopher Roe.

Linklaters’ team was led by corporate partner John Xu and capital markets partners Iris Leung, Lipton Li and London-based partner Neil Pallender.

Kingson’s team was led by senior partner Dai Yi and partner Chen Xiaoxuan.

Grandway’s team was led by partner Zang Xin.

Kangda’s team was led by partner Xu Guotao.

Tian Yuan’s team was led by partners Cao Chenggang and Pan Jing.

King & Wood Mallesons’ team was led by partner Fan Lingli.

Wang Hang, one of the leading partners from Baker McKenzie, said the companies with their clear overseas strategy will be more popular as the new GDR scheme aims to lure European institutional investors and the SIX hopes to mainly attract tech companies.

“In general, Switzerland is a neutral country with a stable political environment and predictable regulations. In terms of investors, Switzerland is one of the major financial centres in Europe and the largest wealth management centre in the world, with many institutional investors. The SIX is one of the largest and most liquid exchanges in Europe. The higher average valuation of listed companies on the SIX also appeals to a lot of foreign companies,” Wang said.

The SIX released a new GDR rule in July, adjusting listed issuer’s obligations. Wang said the issuer should publish regular reports in accordance with the requirements of the SIX, declare the interests of directors and executives when trading GDRs and A shares, and disclose price-sensitive information in time.