The reporter observed that overseas listings are heating up, and Chinese enterprises are more active

Mondo Finance Updated on 2024-03-02

**Times reporter Chen Xiachang.

At the beginning of the year, four Chinese companies have completed their listings in the United States, and many companies have either submitted listing applications or announced their choice to list through SPACs. Compared with last year's desertion, the number of listings in the United States this year is expected to gradually recover.

There are two decisive factors behind the aggressive listing of Chinese companies in the United States. One is the reduction of legal risks. Since the Chinese and US regulators reached a cooperation agreement on audit supervision, the risk of delisting that once loomed over the heads of Chinese concept stocks has gradually disappeared, and most Chinese concept stocks no longer have to worry about being delisted. In China, with the issuance of relevant laws and regulations, the original regulatory vacuum has been filled, and there are laws to follow for enterprises to list overseas. Another factor is that the United States has gradually recovered this year, and the technology and biomedical sectors, which fell significantly last year, are coming out of the trough. The improvement in the secondary market has also made it easier to issue new shares than last year. Coupled with the fact that many SPACs are waiting to be fed, high-quality assets from China have naturally become fragrant.

However, unlike in previous years, the number of Chinese companies choosing to issue global depositary receipts (GDRs) in Europe has also exploded. Since the beginning of the year, six A-share listed companies have announced plans to issue GDRs. In addition, 15 listed companies ushered in new developments in their GDR issuances.

Behind the active landing of Chinese enterprises in the European and American capital markets is the willingness to take the initiative to carry out global layout, hoping to enhance the overseas popularity of brands, open up the overseas upstream and downstream industrial chains, and ultimately promote the internationalization of enterprises.

In the past three years, many Chinese companies have been holding back their efforts to return to the global market as soon as possible. But trapped by the epidemic, there is always a feeling of power and nowhere to go. But once everything is back on track, listing in overseas capital markets has become the most effective way. Overseas listing can not only get more overseas investment and more attention from investment institutions, but also allow overseas investors to more efficiently understand the business model, financial status and future development trend of a Chinese enterprise through the capital market.

The fact that more Chinese companies are listing overseas can also reflect the resilience of China's economic development. Recently, companies listed overseas cover a number of "new economy" related fields, involving new energy, semiconductors, pharmaceuticals, consumption and other industries.

China's high-quality assets are not only in the financial sector, infrastructure industry, resource industry and Internet industry, but also in the new economy.

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