BEIJING, Aug. 14 (Xinhua) -- Exuberant over the frequent overseas listing of Chinese enterprises, more of them submitted filing documents to the Chinese securities regulator in the past months of this year.
Latest data showed that 120 Chinese companies completed filing for overseas securities offering and listing with China Securities Regulatory Commission by August 1 and the figure already surpassed the annual total of last year.
According to a rough survey, 35 Chinese mainland enterprises went public on the Hong Kong stock market this year by August 1 and 32 more Chinese firms got listed in the U.S., exceeding the 22 ones of the same period of last year.
-- Smoother overseas financing channels
So far this year, channels for companies to raise funds overseas have been further cleared amid growing regulator attention and market demand for two-way opening up of the capital market.
Previously in mid April, a guideline issued by the State Council proposed to broaden channels for overseas listing-based financing for enterprises and improve the quality and efficiency of overseas listing filing administration.
Later in July, China's top economic planner, the National Development and Reform Commission, issued a circular to support industry-leading firms with excellent credit records to borrow mid- and long-term foreign debts to further bolster high-quality development of the real economy.
Under such circumstances, there is a noticeable increase in overseas listing activities of Chinese enterprises, said Hao Yusheng, chief representative of Nasdaq in China.
As of June, Chinese companies listed on the Nasdaq market reached 245 ones, contributing 497.4 billion U.S. dollars of market capitalization among the altogether 3,341 businesses listed on the U.S. exchange.
-- Chinese assets seen more attractive
According to Wang Yajun, co-lead of equity financing at Goldman Sachs Asia (excluding Japan), international long-term funds are gradually becoming more optimistic about Chinese assets.
Despite the complex market environment this year, some iconic offerings still arose on the U.S. stock market, which shored up investor confidence and revealed at the same time their interest in Chinese assets.
Compared to foreign businesses, Chinese companies boast explicit advantages in valuation, meaning sound investment chances for overseas investors, added Wang, saying that Chinese assets are fairly valued currently in light of the depreciating Japanese yen, potential interest rate cut risks in the U.S. in the second half of 2024, and the volatile Indian market.
China has a huge market and Chinese enterprises' gratifying revenue, profit-making capabilities and complete corporate management systems stand also for relatively high asset quality.
Currently, overseas investors show more interest in consumer goods and new energy businesses and after weathering drastic market fluctuations, they are paying growing attention to corporate profitability and profiting paths' prospects and sustainability, according to industry insiders.
Wang also emphasized that a market recovery has its own regularity and stages and the current market focus on consumer goods and new energy businesses is likely to change alongside the progression of recovery, hinting opportunities for more Chinese companies to "go out".
Lawrence Lau, EY Greater China financial accounting advisory services leader, believed that generally, companies that have completed filing for overseas securities offering and listing are mostly tech businesses now and as the filing process continues to improve, a more diversified crowd of Chinese companies are likely to participate in related filing.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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