Chinese Companies Choose Switzerland Over US And UK To Raise Money Overseas

3/7/2023 11:19:59 PM

(MENAFN- Swissinfo) Zurich has less-demanding requirements over the transparency of company audits © Keystone / Walter Bieri

Chinese companies are flocking to Switzerland to raise capital after being discouraged from listing in the US by geopolitical tensions and in Britain by tougher audit standards.

This content was published on March 7, 2023 March 7, 2023 minutes Daniel Thomas and Nikou Asgari, financial Times

Nine Chinese companies floated in Zurich last year, raising $3.2 billion (CHF3 billion) in the European country, according to SIX, the operator of the Swiss stock market. That far outstrips the $470 million they raised in New York, data from Dealogic stated.

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Their shift of focus to Switzerland comes in response to months of tensions between Beijing and Washington over standards for Chinese companies on US markets. The US sought greater access to listed companies' financial audits but China resisted, citing a desire to protect state secrets.

Zurich has particularly benefited from the unease as it has less-demanding requirements over the transparency of company audits.

Dozens more Chinese companies are looking to use a link set up last year that connects the Shanghai and Shenzhen stock markets with the main market in Zurich, according to bankers and exchange executives.

The“stock connect” scheme, modelled on a similar one with London, allows companies that are listed in one venue to raise capital on the other. Just five other companies floated on the Swiss market in 2022.

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