Chinese companies are flocking to Switzerland to raise capital after being discouraged from listing in the US by geopolitical tensions, reports the Financial Times. Nine Chinese companies floated in Zurich last year, raising $3.2 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.
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.