60 million pigs a year
Chinese slaughterhouse wants to go public on the Swiss stock exchange
The Swiss stock exchange is popular with Chinese companies. Since the law was changed in China last year, eight Chinese companies have had their listings listed in Zurich – with moderate success. With the slaughterhouse company Muyuan Foods, another one is added.
Published: 7 minutes ago
The Chinese slaughterhouse group Muyuan Foods is planning an IPO in Switzerland. (icon picture)
1.4 million people live in the Middle Kingdom. All these people want to be fed. So it’s no wonder that the slaughterhouses in China have a slightly different dimension than in tranquil Switzerland. The slaughterhouse company Muyuan Foods kills and processes an unbelievable 60 million pigs every year.
Now the group is going public – in Switzerland. This is reported by the Handelszeitung. The IPO is not the first of a Chinese company in Zurich. As of today, eight companies from China are already listed on the Swiss market. However, without much success. So why are more and more Chinese companies striving to list on our stock exchange?
1.4 billion francs
The Chinese group wants to raise CHF 1.4 billion by issuing certificates of deposit (GDR) on the Swiss stock exchange. Muyuan Foods is already listed on the Shenzhen Stock Exchange in China. The group has already hired the banks CCIC and JPMorgan to get the deal through.
According to insiders, the IPO could be completed as early as this March. However, the timing could change. However, the employees of the two banks familiar with the company did not want to comment on this.
Why the Swiss stock exchange?
The Swiss stock exchange seems to be very popular with Chinese companies at the moment. Just last week, mining company Zhejiang Huayou Cobalt Company announced similar plans. The Chinese company also plans to go public with a certificate of deposit (GDR) in the next few months, Bloomberg writes.
The reason for the increased number of IPOs by Chinese companies is the “China-Switzerland Stock Connect” system launched by SIX last July. Since then, Chinese companies have been able to trade their receipts of deposit (GDR) in Switzerland. The Chinese companies hope that the IPOs in Zurich will give them better access to international investors. A change in the law by the Communist Party has recently made such ventures by Chinese companies possible in foreign trading venues.
Most of the time there is no success
But access to new capital is only one side of the coin. Because the Chinese companies that dare to go public on the Swiss stock exchange hope above all to gain more recognition in the West. This then also explains why the Chinese papers have hardly been traded since the IPO. Nobody in Europe knows them.
The desire for greater awareness in the West and access to the European market often does not come from the companies themselves. Insiders suspect that this desire emanates directly from Beijing’s political leadership. On the one hand to mark Chinese presence, on the other hand to have a back hand in case of further escalation in the economic war with the USA.