GERMANY/CHINA
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Although shares in Chinese companies have been traded on the Brse before, this is the first time a Chinese company has listed on the Frankfurt exchange. Historically, most Asian companies sought listings on US exchanges, but for smaller- to medium-size firms IPOing in the US is now perceived to be too expensive. European exchanges such as Deutsche Brse are hoping to pick up the slack.
Gongyou has listed on the Brses Open Market, which has the lowest regulatory requirements. If Chinese companies wanted to list on the exchanges General Standard market, a spokesperson said, they would need to meet all the requirements expected of German companies.
Gongyou is registered in Singapore and has factories in Weihai City in the province of Shandong. Its listing on the Frankfurt exchange follows months of roadshows in China by the Deutsche Brse, which held an IPO seminar in Beijing. In an effort to attract Chinese companies and compete with other exchanges looking to do the same, the Frankfurt exchange is offering Chinese companies low-cost listings as well as the promise of a more liquid market for raising capital and the opportunity to build a global brand name and reputation by listing alongside well-known names such as Adidas, BMW, Puma, BASF and SAP.
Anita Hawser
