Back on the German stage

Trading approval for Swiss stock market values as opportunities for companies and investors

by Jens Hecht, CFA, Managing Partner, Kirchhoff Consult, and Jan Hutterer, Executive Director, Kirchhoff Consult, in Going Public magazine
 

Since 1 May 2025, Swiss shares have been regularly tradable on German stock exchanges again after a break of almost six years. This ends a regulatory conflict between the EU and Switzerland that has also hampered German investors for years. Many private investors had been forced to rely on cumbersome workarounds – such as over-the-counter trading platforms, American Depositary Receipts (ADRs), or costly certificates. The resumption of trading on European stock exchanges not only ends a period of increased costs and lack of transparency, but also marks the beginning of a new chapter with opportunities for Swiss companies and German investors. With a market capitalisation of around €1.6 trillion, the Swiss stock market is almost as large as the German market – a heavyweight that investors can now access again without detours.
 

Why German investors should take a closer look at Switzerland

On the one hand, the lifting of trading restrictions will make international blue chips more accessible. German investors will have the opportunity to invest in business models they are familiar with: insurance (Zurich, Swiss Re), telecoms(Swisscom), healthcare & medtech (Roche, Novartis) and consumer brands such as Lindt & Sprüngli. The strong dividend culture of many Swiss companies is also particularly attractive. In addition to direct access to high-dividend blue chips, German investors also have the opportunity to invest in exciting small and mid caps that are hardly known in this country.

Sarah Hellemann, an expert on Swiss equities at the research firm NuWays, sees a lot of potential in Swiss small caps in particular. She comments: "For many investors, Switzerland has so far been known primarily for its fine chocolate, its exquisite watchmaking and its mountain railway companies. But this image only shows a fraction of what Switzerland has to offer. At least as exciting is the Swiss small and mid-cap segment, which is home to many hidden champions with outstanding product technologies whose names are hardly known to German investors."
 

Swiss small caps – unknown but attractive

Analytical firms such as NuWays are continuing to expand their involvement in the Swiss market – not least because German investors' interest in Swiss stocks has increased noticeably. Away from the big names, there are numerous second-tier companies that impress with their passion for their products, clear strategies and solid key figures. NuWays analyst Sarah Hellemann finds the following stocks interesting, for example:

• Straumann Holding AG: This company, which operates in the field of implant-supported and restorative dentistry as well as orthodontics, impresses with its high-quality solutions and genuine entrepreneurial spirit. Active worldwide, Straumann is boldly and innovatively conquering growth markets such as Asia and Latin America – with double-digit sales growth. This has enabled it to raise its overall growth to an above-average level.
• Orell Füssli AG: Visitors to Switzerland may be familiar with the company through its lovingly furnished bookshops at railway stations and in city centres. But Orell Füssli is also active in publishing and security printing. While other companies in the traditional printing industry are struggling, Orell Füssli has found its niches – including profitable banknote printing, the develop.
• Zehnder Group AG: The Swiss manufacturer of indoor climate technology impressed in the first half of 2025 with its technically sophisticated solutions, particularly in Europe. In view of falling interest rates in Switzerland and the eurozone, NuWays expects construction activity to gradually increase over the next 24 months – a trend from which the Zehnder Group is likely to benefit.
• ALSO Holding AG: This Swiss IT company attaches great importance to flexibility for end customers. With access to products from over 800 vendors, it can provide tailor-made products and services. In addition, the company supports its customers throughout the entire IT life cycle – from deployment and maintenance to return and refurbishment to marketing. In the first half of 2025, ALSO achieved sales growth of 35 per cent.
   

Now it's all about performance on the German capital market

For Swiss companies, the regulatory change opens up the opportunity to increase their visibility and broaden their investor base. Small and mid caps in particular can expect a noticeable improvement in their trading volumes if they make the necessary commitment. However, according to Kirchhoff Consult, it is vital that lesser-known Swiss companies do not treat the German capital market passively, but engage with it actively. This includes attending investor conferences in Frankfurt, Munich or Hamburg, as well as targeted press relations with German capital market journalists. It is also necessary to expand research on the German market so that small and mid caps become more visible and institutional and private investors gain confidence. At the same time, it is important to convincingly explain why the business model is just as attractive as DAX, MDAX or SDAX stocks – and why investors should make the effort to invest across the border.

For communications managers at Swiss companies, the trading approval is both an opportunity and a challenge: Simply being tradable in Germany is not enough to broaden the investor base or improve liquidity. It is crucial to take action and send clear messages to the German capital market. Only in this way can the opportunities offered by the trading approval be fully exploited and sustainably transformed into value for the company itself.