After the revision of the rules of Shanghai Luntong, the first enterprise to announce that it plans to issue GDR overseas and be listed was born, which is a leading enterprise of construction machinery Sany Heavy Industry Co.Ltd(600031) ( Sany Heavy Industry Co.Ltd(600031) . SH).
According to the announcement of Sany Heavy Industry Co.Ltd(600031) 315, the company plans to issue global Depositary Receipts (GDR) overseas and list on the Swiss stock exchange. The issuance scale, issuance scheme, purpose and feasibility of raised funds are still being demonstrated.
The company also said that the overseas issuance and listing of global depositary receipts is an important measure for the company to respond to the call of China's capital market policies, deepen the interconnection of China EU capital markets, and use overseas capital markets to promote the development of the real economy.
In December last year, the CSRC revised the rules of Shanghai London Stock connect, expanded the scope of application in both directions, and expanded overseas to major European markets such as Switzerland and Germany Sany Heavy Industry Co.Ltd(600031) became the first enterprise to announce its intention to issue GDR overseas after the revision of the rules.
based on the purpose of promoting internationalization strategy
In recent years, the concentration of China's construction machinery market has increased, with obvious leading advantages such as Sany Heavy Industry Co.Ltd(600031) , Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) and so on. Overseas leading enterprises are also striving to enhance their competitiveness Sany Heavy Industry Co.Ltd(600031) president Xiang Wenbo once said that previously, the company was committed to expanding markets in Asia and central and South America, and will start to expand markets in North America and Europe in the future.
For the overseas issuance of GDR, the company said that in order to broaden Sany Heavy Industry Co.Ltd(600031) international financing channels, meet the needs of the company's international business development, further strengthen the global brand influence and unswervingly promote the internationalization strategy.
The overseas issuance and listing of global depositary receipts has three purposes: to promote the internationalization strategy; Make full use of capital market support; Improve the level of corporate governance.
Sany Heavy Industry Co.Ltd(600031) said that the company has made every effort to promote the internationalization strategy. At present, it has achieved the first global market share of excavation machinery and concrete machinery, and the global market share of construction machinery such as hoisting machinery has increased rapidly. The company is in the rapid development stage of internationalization, and will continue to increase resource investment and channel construction in overseas markets, so as to achieve breakthrough progress in overseas markets, especially in Europe and the United States.
"After the global depositary receipts are issued overseas and listed on the Swiss stock exchange, the funds raised will be mainly used for the company's international business, further promote the company's internationalization process, help to improve the company's profitability and comprehensive competitiveness, and comply with the company's strategic planning and long-term development goals." The company said.
The issuance of GDR will also help to improve the level of corporate governance Sany Heavy Industry Co.Ltd(600031) said that the overseas issuance and listing of global depositary receipts will further optimize the company's equity structure, improve the transparency and standardization of corporate governance, and provide a solid governance mechanism guarantee for the high-quality development of the company.
The company indicated that the issuance scale, issuance scheme, purpose and use feasibility of the raised funds of the overseas issuance and listing of global depositary receipts are still under demonstration, and there are still great uncertainties, and the issuance still needs to be approved by the board of directors and the general meeting of shareholders of the company, as well as the approval of China Securities Regulatory Commission, Swiss stock exchange and other competent authorities at home and abroad Approval or filing.
deepen China EU capital market connectivity
In the context of deepening the interconnection of capital markets, in December last year, the CSRC planned to revise the rules of Shanghai London Stock connect. One of the revised contents is to broaden the scope of application and expand to major European markets such as Switzerland and Germany on the basis of comprehensively considering the development degree of overseas markets, investor protection and regulatory level.
The CSRC has said that the revision is to further facilitate cross-border investment and financing, promote the global allocation of factor resources, and promote the institutional opening of the capital market.
Sany Heavy Industry Co.Ltd(600031) said that the overseas issuance and listing of global depositary receipts is an important measure for the company to respond to the call of China's capital market policies, deepen the interconnection of China EU capital markets and use overseas capital markets to promote the development of real economy.
The company hopes to make full use of the favorable opportunity of capital market reform and the strong support of policies to realize direct connection with overseas capital markets, improve the company's overseas brand awareness, enhance multi-channel financial ability, and provide sufficient capital and financial resources for the company's international strategic development.
Public information shows that since the introduction of relevant policies and supporting rules of Shanghai Luntong in 2018, four listed companies on the Shanghai Stock Exchange have successfully issued global depositary receipts and listed on the London Stock Exchange, raising a total of US $5.84 billion, which has played a positive role in broadening two-way financing channels and supporting the development of the real economy.
In addition, the securities and Exchange Commission of the United States (SEC) recently named five China concept stocks, saying there was a "delisting risk", which made China concept stocks experience a wave of collective "sell-off". Some insiders believe that Chinese enterprises listed in the European market may provide an alternative to IPO in the United States and Hong Kong.
