Three Chinese companies plan Swiss listings

[SHANGHAI] Three Chinese companies - an engineering machinery maker, a battery producer and a medical equipment manufacturer - unveiled plans on Wednesday to list on the SIX Swiss Exchange, as Beijing reaffirms its support of offshore listings.

Shanghai-listed Sany Heavy Industry, and Shenzhen-traded Gotion High Tech and Lepu Medical Technology (Beijing) said in respective filings that they aim to sell Global Depository Receipts in Switzerland to fund global expansion.

The companies also said they were answering government calls to strengthen connectivity between Chinese and European capital markets, and that listing overseas would help broaden financing channels and improve corporate governance.

Late last year, China broadened a stock connect scheme linking Shanghai and London to include capital markets in Germany and Switzerland.

The first batch of applicants under the expanded scheme comes as Chinese vice premier Liu He said on Wednesday the Chinese government continues to support offshore listings by domestic companies.

China's securities regulator also vowed on Wednesday to keep overseas listing channels open, part of a concerted effort to appease investors worried about a possible financial decoupling amid heightened geopolitical tensions between Beijing and Washington.

Europe offers alternative offshore listing venues for Chinese companies beyond the United States and Hong Kong.

Sany, a major Chinese maker of construction and mining equipment, said a Swiss Exchange listing would help accelerate its internationalisation strategy and improve its competitiveness.

"The company hopes to take full advantage of China's capital market reform and strong policy support to connect directly with overseas capital markets," Sany said.

Gotion, which makes lithium-ion power batteries used in electric vehicles, and counts Volkswagen AG as a strategic partner, said it will use the proceeds from the planned listing to fund global expansion.

Lepu Medical also said listing overseas will improve its global branding and market share.

All three companies said their fundraising plans are still under discussion, and that the issuance requires approval from shareholders and regulators. REUTERS