As of11month7day, since the beginning of this year9The company has newly launched an issuanceGDRPlanned, Cumulative21homeAEquity listed company issuanceGDRSuccessfully accessed the European securities market, raising a total of over110billion US dollars. In terms of industry distribution, issuanceGDREnterprises have further expanded from traditional fields such as finance and power to new economy-related areas. Currently, successful issuancesGDRof21homeAAmong listed companies, industries such as power equipment, machinery and equipment, and pharmaceutical biology rank at the forefront. And those that are planning and advancingGDRof27In terms of companies, there are more in industries such as household appliances, automobiles, and food and beverages.
whyGDRFocusing on industries such as pharmaceuticals and new energy, which other sectors are expected to join in the future? What are the major needs in terms of overseas layout, financing, and attracting overseas investors? From the perspective of the secondary market,GDRWhy is there insufficient liquidity after the issuance? How can we better attract long-term overseas investors? Frost & SullivanFrost & SullivanLu Jing, Partner and Managing Director of Frost & Sullivan's Greater China Region, was interviewed by Securities Daily to discuss Chinese enterprisesGDRDevelopment path.
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Securities Daily
Q
From an industry perspective, whyGDRFocusing on industries such as pharmaceuticals and new energy, which other industries are expected to join in the future? What are the major needs in terms of overseas layout, seeking financing, and introducing overseas investors?
As of nowGDRThe issuance is mainly in manufacturing sectors such as pharmaceuticals and new energy. Part of the reason is that most leading Chinese enterprises in these related fields have already played an important role in the global industrial chain. For example, in the new energy sector, China's overall production capacity and shipment share in various links of the lithium battery industry chain already account for a significant proportion globally.50%In summary, expanding overseas market demand by going global is urgent. It has a significant impact on future sustainable business growth and enhancing global competitiveness. To further strengthen the international competitiveness of Chinese enterprises, attract international capital, experience, and teams, with continuous policy support, it is expected that more leading enterprises in various industries will exploreGDRIssuance opportunities, such as high-end equipment manufacturing,ESGIndustrial chain enterprises, etc.
Overseas layout is crucial for leading enterprises in various industries in China. The migration of the supply chain and the overseas expansion of upstream and downstream enterprises have gradually shifted the overseas strategies of many industry leaders from consideration to necessity. Overseas localization service networks, production system construction, and the establishment of R&D centers are not only important foundations for enterprises in the fields of new energy, pharmaceuticals, and high-end equipment manufacturing to enhance their international influence and service capabilities, but also crucial for maintaining a keen insight into market demand and making judgments on future development directions.
Q
From the perspective of the secondary market,GDRWhy is there insufficient liquidity after the issuance? How can we better attract long-term overseas investors?
GDRThere are several reasons for insufficient liquidity after issuance. Firstly, local investors from Switzerland, the UK, Germany, and other regions are relatively unfamiliar with Chinese enterprises and their products, which to some extent constrains their investment decision-making. Chinese investors also know less about the European market and are unfamiliar with processes, policies, and trading rules.
The introduction of overseas long-term investors has an important impact on Chinese enterprises in enhancing their international market competitiveness. Long-term investors value complementary targets and businesses, the future development prospects of industries, and corporate values. Therefore, Chinese enterprises seeking overseas long-term investors can consider cooperation opportunities based on coordination and complementarity in upstream and downstream businesses and resources, such as jointly establishing R&D centers. At the same time, they should establish a complete and efficient communication feedback mechanism. Deeply integrate the values of both parties on the basis of mutual benefit and win-win results, in order to achieve long-term common development.
* This interview was published in Securities Daily Reporters: Xie Ruolin and Mao Yirong. Original title: Issued on the Hong Kong Stock ExchangeGDRAdd one more example multipleAShare company consulting on issuance matters ">
