(Bloomberg) -- Chinese authorities are courting European companies to raise funds on the country’s stock exchanges, as they seek to kickstart a program to attract foreign listings, people with knowledge of the matter said. 

Overseas firms backed by Chinese investors are among the first candidates being considered, the people said, asking not to be identified because the information is private. German forklift maker Kion Group AG is one of several companies studying the possibility of selling depositary receipts on a Chinese exchange through the program, according to the people. 

Chinese heavy machinery maker Weichai Power Co. is Kion’s biggest shareholder with a 41% stake, according to data compiled by Bloomberg. Kion shares have fallen 56% in Frankfurt trading this year, giving the company a market value of about 5.6 billion euros ($5.7 billion). 

Any offerings would take place through a stock connect program meant to link China with overseas markets and facilitate cross-border listings. The program initially connected the Shanghai and London exchanges, and has since been expanded to include Germany, Switzerland and Shenzhen. 

The link is meant to be two-way, allowing companies on both sides to sell shares through the program, though so far it’s only been used by Chinese-listed companies to raise funds on overseas exchanges. Deliberations are at an early stage, and companies like Kion haven’t decided whether to proceed, the people said. 

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A spokesperson for Kion declined to comment, while representatives for Weichai Power and the Shanghai Stock Exchange didn’t respond to requests for comment. The Chinese securities regulator didn’t immediately respond to faxed queries. 

China has been making efforts to open up its financial markets and attract foreign capital. Its securities regulator said in February it would relax accounting rules to make it easier for overseas firms to list without adopting local accounting standards. 

Still, the stock slump caused by China’s Covid Zero policies and concerns over the economic effects of renewed lockdowns have somewhat dimmed the market’s prospects. The benchmark CSI 300 Index fell 0.5% to 4,269.34 at Tuesday’s close, taking this year’s declines to 14%. 

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