Chinese investors are grilling listed companies with European exposure after the Dutch government seized management control of Nexperia from its Chinese owner Wingtech Technology, in a sign that public trust in European business ties is being undermined.
At least seven companies listed in Shanghai and Shenzhen have been publicly asked by investors about risks stemming from their investments and operations in the Netherlands, Luxembourg, Germany, France and Italy.
The souring sentiment is a by-product of a deepening dispute between China and the Netherlands over Nexperia, after Dutch authorities took control of the chipmaker’s management, citing national security concerns, and ousted CEO Zhang Xuezheng. In response, Beijing banned Nexperia’s Chinese units from exporting their products.
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Shares of Shanghai-listed Wingtech have dropped roughly 12 per cent this month, while companies with plans to acquire European tech assets have come under scrutiny.
The Nexperia logo is pictured on its building in Hamburg, Germany, June 27, 2024. Photo: Reuters alt=The Nexperia logo is pictured on its building in Hamburg, Germany, June 27, 2024. Photo: Reuters>
Suzhou-based chipmaker China Wafer Level CSP (WLCSP), which acquired Dutch optical component maker Anteryon in 2019, was questioned last week by an investor over whether Anteryon would face similar risks, according to the question-and-answer platform of the Shanghai Stock Exchange.
WLCSP responded that its Dutch subsidiary was “operating normally”, but its stock has declined more than 10 per cent this month.
Xiamen-based Sanan Optoelectronics recently announced a plan to acquire Dutch LED developer Lumileds, and told investors last week that the deal would “further enhance the company’s global market recognition and competitiveness”. However, the Shanghai-listed shares of Sanan are down more than 9 per cent so far this month.
The Chinese concerns have extended to countries beyond the Netherlands. Shanghai-listed Techmation and Shenzhen-listed DBG Technology, which own assets in Italy and France, respectively, as well as Jiujiang Defu Technology, which has yet to conclude its takeover of Circuit Foil Luxembourg, faced similar questions.
Suzhou-based industrial automation provider RoboTechnik Intelligent Technology assured shareholders of its “positive” connection with German subsidiary FiconTEC. “The long-standing positive collaboration and interaction between the Chinese and German teams have fostered a strong sense of cohesion”, the company said on the question-and-answer channel of the Shenzhen bourse.
