(Bloomberg) -- UBS Group AG has been selected to arrange the Swiss share sales of two Chinese companies, people familiar with the matter said, as a flurry of firms are capitalizing on an expanded link between stock exchanges in China and Europe.

Shanghai Jinjiang International Hotels Co. is working with UBS for its global depositary receipts issuance in Zurich, which could raise at least $500 million, said the people, who asked not to be identified discussing non-public information. UBS is also advising Shenzhen-listed Jiangsu Eastern Shenghong Co. on its GDR sale in Switzerland, the people said, adding that CLSA Ltd. is on the deal as well.

Shenghong, a textile products manufacturer, plans to sell GDRs in either Zurich or London to meet its business development needs, according to an exchange filing in August. Shanghai Jinjiang also announced its intention to issue GDRs in Switzerland in the same month. Both GDR sales could be launched before the end of this year, the people said.

Deliberations are ongoing and more banks could be added, the people said. A representative for UBS declined to comment, while a representative for CLSA didn’t immediately respond to requests for comment. Shanghai Jinjiang and Shenghong didn’t respond to calls and written requests for comment.

Chinese companies are turning to Switzerland in the hopes of raising funds from overseas investors as geopolitical tension, policy tightening and a global slump in initial public offerings all make conventional listings abroad increasingly difficult.

While Beijing and Washington last month reached a preliminary deal to allow American officials to review audit documents of Chinese businesses trading in the US, in hopes of preventing delistings mandated by Congress, companies are still seeking alternative trading venues elsewhere in case of additional fallout.

China’s securities regulator said in February that the Shanghai-London Stock Connect, which allows companies that are listed on one exchange to offer depositary receipts on the other, would be extended to include firms listed in Switzerland, Germany and Shenzhen.

The first wave saw four Chinese firms raise about $1.5 billion in total via Swiss GDR sales in July, including offerings for battery makers GEM Co. and Gotion High-Tech Co. While the debuts opened the gate for more issuance of the depositary receipts, they were met with muted trading volume.

Read more: How and Why Chinese Firms Are Listing in Europe Now: QuickTake

(Adds more details on other GDR sales in last paragraph.)

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