Chinese companies have raised six times as much money through share sales in Europe than the US this year, as exchanges in London and Zurich benefit from fraying geopolitical ties between the two superpowers, reports the Financial Times.
The fundraising haul marks the first time that Chinese corporate dealmaking in Europe has exceeded that in New York. It underscores the high stakes of a landmark audit inspection agreement between Beijing and Washington in August, which will be tested this month as the fate of about 200 Chinese companies’ listings on Wall Street hangs in the balance.
Five Chinese companies have raised more than $2.1 billion on stock exchanges in Zurich and London this year, according to data from Dealogic. By comparison, less than $400 million in total has been raised from listings in New York. Zurich, in particular, has benefited from a new “stock connect” scheme with mainland Chinese exchanges and its less demanding requirements over the transparency of company audit files.