Chinese firms shift to Switzerland for capital amid US crackdown

As the US constantly pushes for a so- called financial decouple from China, Chinese firms have been shifting to new overseas markets such as Switzerland to expand capital- funding channels.

Experts said the fast growth of these capital markets will soon make the US realize that it is not irreplaceable, while urging the US to correct its mistakes and build a fair and predictable business environment for Chinese firms.

As of Thursday, at least 10 Chinese companies have announced they will list on the SIX Swiss Exchange by issuing Global Depositary Receipts ( GDRs). The companies include Shanghai- based Will Semiconductor Co, Shenzhen- based Eastroc Beverage, heavy equipment multinational Sany Heavy Industry Co and medical equipment maker Lepu Medical Technology.

Generally, these companies hope to expand international capital- raising channels through issuing GDSs overseas to meet the needs of their international business while strengthening global brand recognition, according to their statements.

By listing in Switzerland, Will Semiconductor aims to increase its international recognition, strengthen strategic cooperation with global clients and suppliers and increase international research and development capacity, the company said in a statement on Wednesday.

“As a global leading financial hub, Switzerland’s financial environment and capital market rules are relatively mature, with a higher degree of opening- up and fairness. This makes it attractive for foreign firms,” Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times.

Compared with launching IPOs in overseas markets, the cost of GDR issuance is lower because the process is mature, and that the issuer is already listed on the A- share market makes it easier for their GDRs to be approved in overseas markets, Dong said.