It is said that there are two main reasons: one is to establish the main board position of the A-share market, and the other is to avoid the possibility of lowering the issue price of A-shares by issuing H-shares first. The implication is that BOC was oversubscribed 70 times when it issued H shares, and the A-share market was even more enthusiastic. In other words, if A shares are issued first (at least at the same time), the price may be higher. Some time ago, the general manager of Huijin talked about this matter with great interest. In an IPO of Bank of China, Huijin invested 1 yuan in 3 yuan, and the capital of18 billion has earned more than 360 billion. Now it seems that such huge profits are not enough, and it is necessary to make a big profit when the market is good. It is precisely because of this that there is a motion to issue A shares first and then H shares, that is, to let H shares rely on A shares. The problem is that according to relevant laws, the public shares of listed companies need to reach at least 10%. For ICBC, which had a total share capital of 248 billion shares before issuing shares, if A shares are issued first, at least 27.5 billion shares must be issued. If it is issued at 3 yuan's issue price, the A-share market will be siphoned off by 82.5 billion yuan, which is equivalent to the financing amount of the A-share market in normal years. Just because the financing amount of more than 80 billion A shares is too large, we have to retreat to the second line, and A+H shares are issued simultaneously.
If you look at an article by an authoritative person on the Shanghai Stock Exchange entitled "Listing of China Bank Opens a New Era for the Development of China Securities Market", you may be able to see it more clearly. Authorities first analyzed that a large number of companies went public overseas, which made the securitization rate in China mainland only 28%, while the Hong Kong market was as high as 650%. "This extreme imbalance in the development of the two markets is not conducive to the financial security of Hong Kong, a small open economy, nor to the balanced development and financial security of China, a large economy." Then the conclusion is: "The practice of the development of China's securities market so far shows that it is futile and even counterproductive to try to maintain the stability and security of the securities market at the expense of development and innovation." After reading this, people finally understand that the so-called "China Bank's listing opens a new era" means to let enough large blue-chip stocks land on the A-share market as soon as possible, because failure to do so will endanger the financial security of Hongkong and China.