Nasdaq Dubai set to witness surge in Chinese listings
Nasdaq Dubai expects to see a big surge in the issuance of bonds and IPO listings from Chinese firms following the signing of a strategic cooperation agreement by the bourse with Hong Kong-based Zhongtai Financial International and Beijing Tian Tai Law Firm Shanghai Branch.
The agreement seeks to facilitate Chinese companies to list on the Middle East's sought-after international financial exchange.
Nasdaq Dubai, a multi-currency exchange that has hosted listings in renminbi, euros and sterling among others, is the largest exchange in the Middle East for US-dollar denominated debt listings at $82 billion. Its investor base is spread across more than 100 countries.
The exchange has hosted 19 debt issuances from Chinese companies since 2014, valued at $11.3 billion. They include two bonds totaling $1.2 billion listed by the Hong Kong branch of China Construction Bank in August 2020 and two bonds totaling $1 billion listed by Industrial and Commercial Bank of China in October 2019.
Per the agreement, the three parties will use their expertise to provide support and guidance to Chinese companies that wish to carry out initial public offerings on Nasdaq Dubai as well as list bonds, real estate investment trusts (REITs), funds and other securities.
The agreement also covers the deposit of securities into the exchange's Central Securities Depository. In the case of shares, this will enable companies to join Nasdaq Dubai's Private Market, which can be the start of a journey towards a capital market transaction.
"Building on the close relationship between the UAE and China, Nasdaq Dubai offers a warm welcome to Chinese companies that seek regional and international investment as well as high global visibility for their businesses as they expand," said Hamed Ali, chief executive of Nasdaq Dubai and deputy chief executive of Dubai Financial Market.
Ali said investors are eager to support Chinese enterprises that are active inside China's growing economy as well as pursuing dynamic Belt and Road initiatives. "The expertise of Zhongtai Financial International and Beijing Tian Tai Law Firm Shanghai Branch will be of valuable assistance to Chinese issuers as they plan their listing."
Gao Feng, chairman and chief executive officer of Zhongtai Financial International, said Nasdaq Dubai's extensive investor links and location in Dubai as the Middle East's business and finance hub make it an ideal platform for Chinese issuers, as they increasingly see the value of an overseas listing to take their business to the next level.
"Our comprehensive international capital markets knowhow, as well as our wide experience in advising companies across China including Hong Kong in equity, bond and other transactions, is at the disposal of Chinese enterprises as they prepare to join Nasdaq Dubai."
"As Chinese companies extend their Belt and Road activities in the UAE and other countries in Asia and Africa, our extensive resources in cross-border transactions including IPOs and bond issuances can help issuers achieve a Dubai listing in a streamlined and straightforward manner. Nasdaq Dubai is positioned to channel investment from a range of institutional and individual investors into Chinese enterprises," said An Tao, executive partner of Beijing Tian Tai Law Firm Shanghai Branch.
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