Overseas stock exchanges including NYSE Euronext and NASDAQ Stock Market Inc said they plan to open offices in China for the first time, amid efforts to woo Chinese companies to their bourses.
NYSE Euronext, NASDAQ, London Stock Exchange Plc and Deutsche Borse AG are all preparing to set up representative offices in China when regulations that take effect on July 1 allow them to do so, the bourses' executives said at a private equity conference in Beijing yesterday.
"Setting up shop locally will allow us to conduct many more promotional activities on the ground, and to be in closer touch with Chinese companies," Rainer Reiss, a Frankfurt-based managing director at Deutsche Bourse, said in an interview yesterday.
Foreign bourses are looking to win a share of lucrative stock sales by Chinese companies. Domestic initial public offerings will probably amount to US$25 billion to US$30 billion this year, more than the US$20 billion to US$25 billion expected for Hong Kong, said Jing Ulrich, JPMorgan's Hong Kong-based chairman of China equities.
China's benchmark CSI 300 Index has surged more than 90 percent this year as Chinese firms like Ping An (Insurance) Group Co (
Overseas stock exchanges "aren't the holy grail for 100 percent of Chinese firms," Reiss said. "But an overseas listing is helpful for companies looking for strategic acquisitions and brand recognition abroad."
Selling shares on NYSE Euronext would allow Chinese companies to make acquisitions overseas with their New York-listed stock, said Yang Ge (
China's securities regulator issued rules on May 21 allowing foreign bourses to set up offices in the country. They aren't allowed to participate in "operational activities," though they may provide liaison, promotional and research services, the China Securities Regulatory Commission said.
The Tokyo Stock Exchange said on May 22 it planned to establish its first office in Beijing to encourage Chinese firms to list in Japan.
Plans by international exchanges to set up offices in China were also confirmed by Jane Zhu (祝曉健), Asia-Pacific head of the London Stock Exchange, and Xu Guangxun (徐光勳), NASDAQ's China chief representative, at yesterday's conference.
NASDAQ, the world's largest all-electronic exchange, said in April it will introduce an index tracking Chinese companies traded in the US as part of an effort to lure more international listings.
WASHINGTON’S INCENTIVES: The CHIPS Act set aside US$39 billion in direct grants to persuade the world’s top semiconductor companies to make chips on US soil The US plans to award more than US$6 billion to Samsung Electronics Co, helping the chipmaker expand beyond a project in Texas it has already announced, people familiar with the matter said. The money from the 2022 CHIPS and Science Act would be one of several major awards that the US Department of Commerce is expected to announce in the coming weeks, including a grant of more than US$5 billion to Samsung’s rival, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), people familiar with the plans said. The people spoke on condition of anonymity in advance of the official announcements. The federal funding for
HIGH DEMAND: The firm has strong capabilities of providing key components including liquid cooling technology needed for AI servers, chairman Young Liu said Hon Hai Precision Industry Co (鴻海精密) yesterday revised its revenue outlook for this year to “significant” growth from a “neutral” view forecast five months ago, due to strong demand for artificial intelligence (AI) servers from cloud service providers. Hon Hai, a major assembler of iPhones that is also known as Foxconn, expects AI server revenues to soar more than 40 percent annually this year, chairman Young Liu (劉揚偉) told investors. The robust growth would uplift revenue contribution from AI servers to 40 percent of the company’s overall server revenue this year, from 30 percent last year, Liu said. In the three-year period
LONG HAUL: Largan Energy Materials’ TNO-based lithium-ion batteries are expected to charge in five minutes and last about 20 years, far surpassing conventional technology Largan Precision Co (大立光) has formed a joint venture with the Industrial Technology Research Institute (ITRI, 工研院) to produce fast-charging, long-life lithium-ion batteries for electric vehicles, mobile electronics and electric storage units, the camera lens supplier for Apple Inc’s iPhones said yesterday. Largan Energy Materials Co (萬溢能源材料), established in January, is developing high-energy, fast-charging, long-life lithium-ion batteries using titanium niobium oxide (TNO) anodes, it said. TNO-based batteries can be fully charged in five minutes and have a lifespan of 20 years, a major advantage over the two to four hours of charging time needed for conventional graphite-anode-based batteries, Largan said in a
Taiwan is one of the first countries to benefit from the artificial intelligence (AI) boom, but because that is largely down to a single company it also represents a risk, former Google Taiwan managing director Chien Lee-feng (簡立峰) said at an AI forum in Taipei yesterday. Speaking at the forum on how generative AI can generate possibilities for all walks of life, Chien said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — currently among the world’s 10 most-valuable companies due to continued optimism about AI — ensures Taiwan is one of the economies to benefit most from AI. “This is because AI is