SHANGHAI Chinese companies will likely be allowed to sell their shares in Germany via issuing so-called "D shares" as soon as this year, in a move that will help them raise their profile in Europe, the Shanghai Stock Exchange (SSE) said.
The plan to launch D shares - Frankfurt-traded shares sold by China-registered firms - is being studied by the Frankfurt-based China Europe International Exchange AG (CEINEX), which was set up jointly by the SSE, Deutsche Borse AG and China Financial Futures Exchange in 2015.
The plan needs approval from Chinese and German regulators, but listing and trading of D shares would likely comply with existing German rules, the SSE said in a statement on Friday.
CEINEX would initially welcome China's publicly-traded blue-chips, especially manufacturing firms with clear international strategies to issue D shares, the SSE said.
Issuing D shares could help Chinese companies increase the awareness of their brands in Europe, and promote their business expansion in the European market, according to the statement.
CEINEX was set up as part of a broader push by China's exchanges to build bridges with overseas markets. The trading platform is dedicated to becoming a new gateway for global investors to China, by offering offshore China- and yuan-related investment products, according to its website.
(Reporting by Samuel Shen and Michelle Price; Editing by Himani Sarkar)