(Yicai Global) Aug. 19 -- Nine more Chinese companies, including Joincare Pharmaceutical Group, are seeking issuances of global depository receipts on the SIX Swiss Exchange amid widening bourse connectivity.

The regulator of Switzerland's principal exchange approved Joincare's listing application, the Shenzhen-based firm said in a statement yesterday.

Another successful applicant is Lepu Medical Technology, according to the Beijing-headquartered medical device manufacturer's statement issued on July 25.

An increasing number of Chinese firms are seeking new financing channels in Europe. On July 28, four Chinese companies became the first to issue GDRs in Switzerland, raising from USD173 million to USD685 million each. The move was enabled by the widening Shanghai-London Stock Connect scheme that now stretches out to Shenzhen, Switzerland, and Germany.

Some other firms have begun the process. One of them is Shenzhen-based battery maker Sunwoda Electronic which already received the green light from the China Securities Regulatory Commission. Moreover, listing plans of three other companies have been passed by their shareholders. There are others that are also making progress.

"Issuing GDRs has the advantages of fewer restrictions, shorter processing time, and efficiency," Securities Daily reported today, citing Li Ce, lawyer at Jingsh Law Firm. Consequently, more companies are seizing the opportunity, Li added.

Many GDR issuers are world-renowned in high-end manufacturing, new energy, and high technology, and they do business internationally, said Xu Kezhen, head of CitiBank’s depositary receipt business in China. Demand for these firms’ products abroad is rising and their market shares are surging. Their overseas orders are increasing year after year, the financing professional added.

Issuing GDRs can accelerate companies’ international development, Xu said. It can lay a foundation for cooperation with well-known global suppliers, strengthening their industry chains while discovering high-quality clients worldwide. It can also raise their penetration rates and market shares, which is in line with these firms' long-term goals, Xu added.

Editor: Emmi Laine, Xiao Yi