A growing number of Chinese new energy companies are pursuing overseas listings, signaling a new phase in their global expansion. According to data from China Electronics News, nearly 20 such firms have announced plans to issue Global Depositary Receipts (GDRs) to date.
Source: China Electronics News
A growing number of Chinese new energy companies are pursuing overseas listings, signaling a new phase in their global expansion. According to data from China Electronics News, nearly 20 such firms have announced plans to issue Global Depositary Receipts (GDRs) to date.
GDRs, a type of financial instrument traded on multiple international markets, serve as a key tool for companies to raise funds. These proceeds can support business expansion, investments in innovation, and improvements in product quality and competitiveness. For example, JinkoSolar has unveiled plans to issue GDRs and list them on the Frankfurt Stock Exchange in Germany, aiming to raise up to RMB 4.5 billion. If successful, JinkoSolar will become the first Chinese solar company to be listed on the A-share, U.S., and German markets simultaneously. Similarly, Sungrow Power Supply plans to issue GDRs and list on the Frankfurt Stock Exchange, targeting up to RMB 4.878 billion (including issuance costs). The funds will support four key initiatives, including the construction of an advanced energy storage equipment plant with an annual capacity of 20 GWh and the expansion of overseas production for inverters and energy storage systems.
Experts note that overseas markets for renewable energy offer diverse profit models and stronger economic viability compared to domestic markets. Additionally, international buyers in regions such as Europe, the U.S., and the Middle East often prioritize product branding, quality, safety, and reliability, while showing less sensitivity to price fluctuations. As a result, overseas sales often achieve higher price points and profit margins than equivalent products sold domestically.
"By issuing GDRs, companies can tap into global capital markets, integrate more deeply into international supply chains, and accelerate their overseas business development," said Tian Xuan, Dean of the National Institute of Financial Research at Tsinghua University. "Moreover, this approach enhances corporate branding, boosts international visibility and credibility, and opens doors to broader global collaborations."