Chinese capital going global A new chapter in the overseas listing of domestic enterprises

Mondo Finance Updated on 2024-02-22

With the deepening of globalization, China's capital market is also actively expanding its overseas markets. According to the latest data from the China Securities Regulatory Commission, 43 domestic enterprises have completed the filing of overseas issuance and listing since the beginning of this year, reaching a total of 106. This trend not only shows the determination of China's capital market to open up to the outside world, but also reflects the strategic layout of domestic enterprises to "go global".

This important move has received a positive response from the market. Since the implementation of the Trial Measures for the Administration of Overseas Offerings** and Listings of Domestic Enterprises and its supporting guidance documents on 31 March 2023, a large number of companies have submitted applications for filing for overseas issuance and listing, of which 62% plan to list in Hong Kong. This choice is not accidental, and the Hong Kong market has become the first choice for domestic enterprises because of its maturity and inclusiveness to new economy enterprises.

A number of economists expressed a positive view of this trend. They believe that the overseas listing of enterprises is not only conducive to expanding overseas markets and enhancing international competitiveness, but also promotes the internationalization of the renminbi and enhances the international influence of China's financial market. In addition, for enterprises in the new economy sector, overseas listings can also obtain higher valuation levels and a more mature investment environment.

With the continuous support of policies and the in-depth opening of the market, the pace of domestic enterprises "going global" will be accelerated. In the future, we look forward to seeing more outstanding Chinese enterprises achieve international development through overseas listings and share the dividends of China's economic development.

There are also many challenges along the way. How to improve the quality of listed companies, strengthen supervision, and cultivate diversified investor groups are all issues that need to be further improved. In this regard, policymakers and market participants need to work together to provide a more favorable environment and conditions for enterprises to list overseas.

The overseas listing of domestic enterprises is an important step in the opening up of China's capital market. Through this process, we can not only enhance the international competitiveness of Chinese enterprises and financial markets, but also create more opportunities for investors from all over the world to share the dividends of China's economic development. This is a win-win process, and it is also a new chapter in the "going out" of Chinese capital.

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