China, Germany to push ahead with dual listing

(ECNS) – A tie-up of the Frankfurt and Shanghai stock exchanges is under consideration to boost dual listings for Chinese companies.

According to the 21st Century Media, Germany is touching base with the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange to explore the possibility for Chinese companies to list in both Shanghai and Frankfurt.

A dual listing would enable Chinese companies to attract more investments, as it sends a signal to investors that a company is in good shape.

Elke König, president of Germany's Federal Financial Supervisory Authority (BaFin), with the plan on his agenda, is scheduled to visit China at the end of July. The two sides are expected to reach an agreement by year end.

The plan would greatly cut the complicated procedure currently required for Chinese companies to file initial public offerings (IPOs) on the mainland and Frankfurt.

According to the German Stock Exchange, 25 Chinese companies are listed in Frankfurt.