Nasdaq Dubai’s new agreement with South Asia’s Zhongtai Financial International and Tian Tai Law Firm will allow Chinese companies to be listed on the Middle Eastern international stock market, media reports said.
Gao Feng, Chairman and Chief Executive Officer of Zhongtai Financial International, told the media, “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.”
As part of the agreement, Nasdaq Dubai and the two firms will provide support and guidance to those Chinese companies who wish to be listed in the stock market. The Chinese companies are open to taking part in IPO’s on Nasdaq Dubai as list bonds, funds and any other market related activities seamlessly.
The security deposit for Nasdaq Dubai’s central securities depository is also covered in the agreement. Furthermore, companies can enter Nasdaq Dubai’s Private Market through the security deposit, allowing them to embark their journey towards a capital market transaction.
Nasdaq Dubai has hosted a slew of debt issuances from Chinese companies in the past six years. Furthermore, this year, China Construction Bank’s two bonds worth $1.2 billion were listed and two bonds worth $1 billion were listed by Industrial and Commercial Bank of China in 2019.
The move by Nasdaq Dubai is effective because many Chinese companies are on the line to make their IPO debut in the Middle Eastern stock market.