The overseas listing of China enterprises means that China's joint stock limited companies issue shares to overseas investors and list them on overseas stock exchanges. At present, there are only two ways: one is direct listing, but the other is indirect listing. The way of direct listing is to directly register the company overseas, and then realize the control right through the acquisition of overseas companies in China, and then go directly to the exchange for listing; The indirect way is to directly inject domestic assets into shell companies through the so-called shell listing. This also exists in China, and the time for listing in this way is shorter than that of direct listing. In addition to these two methods, there are depository receipts and convertible bonds listed, but they are used less.
The reason why China enterprises choose to list overseas is mainly because of the domestic IPO approval system and the restriction of the same share and the same right. We can understand that the examination and approval system will take a long time, and the establishment, historical development, financial level, operating ability, profitability and affiliated enterprises of the company must go through layers of examination and approval. The market thinks that China's listing conditions are one of the most stringent markets. A key to profitability will lead many enterprises to fail to meet the conditions for listing. Even if it meets the listing requirements, it will take two or three years to go public. During this period, many enterprises will experience many changes and lose many development opportunities. In view of this situation, our newly established science and technology innovation board has implemented five sets of listing rules to promote the listing of companies in these emerging industries. The registration system adopted in foreign listing can be successfully listed within a few months as long as the company meets the final hard conditions. In addition, financial auditing is not as strict as in China. When Baidu went public, its operating profit was still at a loss. It was unsuccessful in listing in A shares, but it was successful in listing in the United States. In addition, there is the problem of ownership structure. The United States can implement a two-tier structure, namely AB shares. A shares have higher equity and can directly correspond to 10 voting rights, while B shares are only one tenth of A shares. This ownership structure can help the founders to hold fewer shares, have higher voting rights and better control the enterprise. Alibaba is currently implementing this architecture. What our country requires is one share. Everyone has the same rights and the same voting rights.