Amidst the megashare offerings recent and coming to the Shanghai and Hong Kong exchanges, some Chinese companies have been slipping quietly off to Europe.
Xinhua quotes Chris Lu, a managing partner of accountants Deloitte, saying that since 2006 there have been seven initial public offerings by Chinese firms in London, two in Frankfurt and one at the Paris-based Euronext. China Medical System Holdings and China Central Properties were two that listed in London in June, for example. Lu says the purpose of Chinese companies’ listings is to “to build brand awareness and seek new talent aside from raising money”.
The European listings coincide with expanding Chinese direct investment in Europe, which now tops $1 billion a year, or 5% of China’s outbound investment.