(Yicai Global) June 13 -- Haier Group is poised to become the first Chinese company to debut on Frankfurt’s China Europe International Exchange after receiving regulatory approval in China for the overseas listing.
Haier, one of China’s biggest white goods makers, plans to issue up to 460 million foreign-invested D-shares valued at CNY1 (USD0.16) each following the green light from the China Securities Regulatory Commission, the Qingdao-based company said in a statement.
The listing will help it tap into the European home devices and retail markets, the company said in April. The funds raised through the offering will go toward financing the Chinese home appliance maker’s business development.
“CEINEX will continue to closely cooperate with the issuer to prepare the listing of D-Shares,” said Chen Han, the exchange’s co-chief executive.
Haier’s Shanghai-listed shares [SHA:600690] ended the day unchanged at CNY20.68 (USD3.23) a piece.
CEINEX aims to develop and promote financial products targeting China and yuan-related assets for global investors. “We will actively develop the relevant regulatory framework together with the Deutsche Börse Group to provide the market infrastructure for a smooth start and development of the CEINEX D-Share Market in Frankfurt,” Chen added.
Similar to H-shares, D-shares refer to equity listed by Chinese joint-stock companies. Prospective issuers must obtain approvals from both Chinese and German regulators to proceed. Haier now awaits approval from the German Federal Financial Supervisory Authority. Listing and trading is subject to relevant German rules governing the stock market as well as European Union laws.
Set up in late 2015, the China Europe International Exchange is a joint venture between Shanghai Stock Exchange, Deutsche Börse and China Financial Futures Exchange. Chinese Premier Li Keqiang and German Chancellor Angela Merkel attended the signing ceremony.
Editor: William Clegg