While the US was arguing with China over access to audit papers of Chinese companies listed on US exchanges, Switzerland’s stock exchange was picking up secondary listings of Chinese companies.
SIX’s «Stock Connect» scheme with exchanges in China has been luring mainland Chinese companies for secondary listings in Zurich, the «Financial Times» (behind paywall) reported.
It is also the first time that there has been more Chinese corporate dealmaking in Europe than in New York, the newspaper said, adding that Switzerland has «less demanding requirements over the transparency of company audits.»
More to Come
Since Swiss regulator Finma revised SIX’s «Stock Connect» program in July allowing Chinese companies to list global depository receipts (GDRs) on the Swiss Exchange, SIX has raised $1,6 billion from four Chinese companies with GDR listings, Jos Dijsselhof said in an interview with «Moneycab» (in German) this week.
Last month American and Chinese officials agreed to allow Chinese accounting firms to share more information with US regulators about the finances of Chinese companies listed on U.S. stock exchanges.
Further Chinese Companies to List
It is too soon to say how well the business with Chinese GDRs will fare, Dijsselhof said in the «Moneycab» interview, adding that he was expecting further Chinese companies to list in the coming months.
