SHANGHAI/HONG KONG : Battery maker Sunwoda Electronics Co's debut on the Swiss stock exchange on Monday shines a light on how Chinese firms are tapping global markets outside the United States, as geopolitical tensions make it tougher to raise capital there.
In total, eight listed Chinese companies, including Lepu Medical Tech and battery maker Gotion High-Tech, have raised more than $2.5 billion via the issuance of so-called Global Depositary Receipts on the Swiss bourse. More than a dozen Chinese companies have unveiled plans to follow suit, according to exchange filings.
Chinese listings in the U.S. ground to a halt last July as a result of a sweeping regulatory crackdown - just $152.5 million worth of Chinese listings have taken place in the United States so far in 2022, compared to $12.8 billion in 2021, according to Refinitiv. Zhu said Sunwoda's"landmark" Swiss deal shows that Chinese companies with solid fundamentals can still whet appetite even in an adverse market environment, as long as underwriters can help identify the right investors. UBS was the joint global coordinator and bookrunner for the deal with Goldman Sachs.