Chinese Firms Flock To Switzerland Exchanges Amid U.S. And Domestic Crackdown

At least four firms listed in China are exploring issuing global depositary receipts on the SIX Swiss Exchange by 2022, Bloomberg reports.

Chinese energy drink maker Eastroc Beverage Group Co chose China International Capital Corp and Goldman Sachs Group, Inc GS for a potential Switzerland share sale that could raise $500 million.

The move marks growing U.S.- China rivalry reflected via the former's embargoes on Chinese chipmakers and investments, China's regulatory crackdown on the tech sector, and the uncertain macro environment. 

Additionally, China's stringent COVID-19 lockdowns wreaked havoc on the output.

The U.S. considered banning chipmaking tools' exports to Chinese factories manufacturing advanced semiconductors to impede China's growing dominance.

Five of China's largest state-owned companies declared plans to delist from U.S. exchanges. 

Related: China's Airlines Might Follow the Multibillion-Dollar Delisting From US Stock Markets

In February, China agreed to allow companies listed on one exchange to offer depository receipts in Switzerland, Germany, and Shenzhen.

The first wave saw four Chinese firms raise $1.5 billion in total via Swiss GDR sales in July, including offerings for battery makers GEM Co and Gotion High-Tech Co. 

Alibaba Group Holding Limited BABA seeks to change its secondary listing status on the Main Board of the Hong Kong Stock Exchange to a primary listing.

Bernstein recently hinted at the possibility of Alibaba's Hong Kong listing as its primary listing and the immediate likeliness of fintech affiliate Ant Group's initial public offering.

Photo by mohamed hassan via Pxhere