Investment banks based in China are seeking to build their businesses in Germany amid increasing tensions with the US and dull Hong Kong listings, reported Bloomberg.

A number of Chinese firms such as Citic Securities and Haitong Securities are weighing options to apply for German licences, the publication added citing sources familiar with the matter.

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The licences would allow the firms to provide investment banking services in Germany as well as across the European Union.

Currently, discussions are underway and are subject to changes.

Last month, China International Capital revealed that the firm listed itself in Germany’s Frankfurt Stock Exchange.

Germany’s Federal Financial Supervisory Authority (BaFin), Frankfurt Stock Exchange, Citic, Haitong and others have refused to give any statement on the matter.

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Europe, which has enhanced its cross-border listing scheme, is becoming an attractive destination for Chinese firms that look for foreign funding.

Recently, China’s three biggest state-owned firms have disclosed their intention to delist from exchanges in the US.

Meanwhile, four Chinese firms secured altogether $1.6bn by issuing international depositary receipts on Switzerland’s Six Swiss Exchange last month. Gotion High-tech was one of the companies that issued the receipts.

Around six other Chinese investment companies also plan to list Six Swiss Exchange in future.

These Swiss achievements prompted Chinese bankers to expand their businesses to Germany.

They also expect to be benefited from the stock connect scheme, which first allowed listed companies in Shanghai and London to sell their respective shares on each other’s places.

In February this year, the scheme was expanded to cover Germany, Switzerland and Shenzhen.