Chinese investors grill listed companies with European units after Dutch move

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.

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.

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.