SHANGHAI – Three Chinese companies – a chip maker, a beverage producer and an electronic firm said on Wednesday they plan to issue Global Depository Receipts (GDRs) on overseas stock exchanges, in a bid to broaden their financing channels and ramp up global expansion.
Will Semiconductor Co Ltd Shanghai and Eastroc Beverage Group Co Ltd said they plan to list on the SIX Swiss Exchange, according to their filings to the Shanghai exchange.
Sunwoda Electronic Co Ltd said in a statement its board of directors have approved the plan to float on the SIX Swiss Exchange or the London Stock Exchange, while the specifics would be decided by capital markets, regulatory developments and the real conditions of the company.
In December, China announced plans for a broadened stock connect scheme linking Shanghai and London to include capital markets in Germany and Switzerland, facilitating cross-border investment and promoting the opening-up of China’s capital markets.
Will Semiconductor and Eastroc Beverage said they were responding to government calls to strengthen the links between Chinese and European capital markets, and that listing overseas would help expand its financing options and improve corporate governance.
The two companies also said that their fundraising plans are still under discussion, and that the issuance requires approval from the board of directors, shareholders and regulators.
(Reporting by Jason Xue and Brenda Goh, Editing by Louise Heavens)