Traffic on China’s Expanded Europe Stock Connect Is One-Way So Far

Two months after China expanded its stock connect program to link its equity markets with Switzerland and Germany, Chinese companies have shown far more enthusiasm for listing in Europe than their foreign counterparts have displayed toward Chinese mainland markets.

Four manufacturers have so far disclosed plans to issue global depositary receipts (GDRs) in Switzerland — engineering machinery maker Sany Heavy Industry Co. Ltd. (600031.SH), medical equipment manufacturer Lepu Medical Technology (Beijing) Co. Ltd. (300003.SZ), new-energy vehicle battery maker Gotion High-tech Co. Ltd. (002074.SZ) and battery-materials maker Ningbo Shanshan Co. Ltd. (600884.SH). But no Europe-listed company has announced plans to sell Chinese depositary receipts (CDRs) in Shanghai or Shenzhen through the program, even though the $12 trillion market capitalization of the two Chinese stock exchanges is about six times bigger than Switzerland’s.