Chinese companies head to Switzerland to boost cash with inventory listings

Four Chinese companies raised about $1.5 billion in July by issuing shares on the Six Swiss Exchange under a brand new China stock grab program.

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BEIJING — Chinese companies looking to boost revenue in a foreign country have traveled to Switzerland — and quickly won regulatory approval to act.

That’s according to Baker McKenzie, who said he guided China’s top four companies to list shares through a new stock attachment program with Switzerland on July 28. raised approximately $1.5 billion.

China’s securities regulator cleared the new proportionate issuance in “just a few weeks,” said Wang Hang, a wife of Baker McKenzie’s capital markets watch in Beijing. He noted that the approval process for shows of different proportions can take a few months and even part of a year.

The China Securities Regulatory Commission did not immediately respond to a CNBC request for comment.

The latest listings do not appear to be preliminary public choices, but reproduce a new channel for Chinese companies indexed in the Mainland China market A proportion to raise capital in a foreign country.

The 4 companies – GEM, Gotion High-tech, Keda Industrial Group and Ningbo Shanshan – have issued Global Certificates of Deposit (GDR) on the Six Swiss Exchange under a new Sino-Swiss inventory linking program with the Shanghai and Shenzhen stock exchanges. The 4 companies operate in new energy or production industries.

Chinese companies’ right of access to a foreign country’s capital markets has come under greater scrutiny due to the high-profile suspension of Ant Group’s deliberate IPO in late 2020 and Beijing’s crackdown on Didi in the summer of 2021.

On the Chinese side, new laws on consumer privacy and national security have raised the bar of public choice in a foreign country. The potential failure of an audit settlement with the United States threatens the delisting of many Chinese companies from New York stock exchanges.

But companies considering listing in mainland China and Hong Kong routinely face stricter requirements than in the US market.

An EY filing discovered that on June 14, more than 920 companies have been online to move audiences in mainland China and Hong Kong. This was once little changed from March.

Chinese companies line up

While Chinese companies expect readability on a faster IPO process, some who might be able to turn to Switzerland.

A buyer considering a Hong Kong IPO decided to prioritize an RDA listing in Switzerland and pursue a Hong Kong listing later, Wang said, citing a conversation on the morning of Thursday, July 28.

Since announcing the approach of the Sino-Swiss rapprochement program this year, “at least 13 Chinese listed companies have already announced their intention” to provide shares, Wang said. “There are other companies that are planning this but haven’t made an announcement.”