1, the financial indicators can't meet the listing standards of A shares, so we have to go public in the United States. VyB Jucai.com, China
In August 2005, when Baidu went public in the United States, someone raised this question. Let's have a look. Baidu only announced its profit in 2003, and its profit record at the time of listing was only two years. Until the first quarter of the year of listing, Baidu's net profit was only $300,000, equivalent to RMB 2.4 million, which could not meet the listing conditions of A-share small and medium-sized board. "The net profit in the last three fiscal years is positive, with a total of more than 30 million yuan; The net cash flow generated by business activities in the last three fiscal years has accumulated more than RMB 50 million, or the operating income in the last three fiscal years has accumulated more than RMB 300 million ",which even fails to meet the current GEM listing conditions:" continuous profit in the last two years, the accumulated net profit in the last two years is not less than RMB 6,543,800,000+,and the continuous growth "or" profit in the last year, and the net profit is not less than RMB 5 million, and the operating income in the last year is not less than RMB 5 million. The net assets before the issuance are not less than 20 million yuan. "
Baidu is not bad. When Sina, Sohu and Netease were listed in the United States, the company didn't talk about profit, and even the profit model of NTES was unclear, let alone meeting the A-share listing standards.
2, because A shares are unbearable to "circle money".
For example, after the stock market crash, many investors demanded to stop ipo to prevent "funds from being diverted". I didn't expect the regulatory authorities to listen to good advice and really stopped the ipo. But the company still needs to raise funds. Therefore, during this period, these outstanding central enterprises of PetroChina (PTR) all went to Hong Kong to collect money, and then went to the United States to issue adr.vyB in Jucai.com, China.
As can be seen from the above facts, China's regulatory authorities are most concerned about investors, especially afraid that investors will buy poor-quality stocks, so they have painstakingly set up strict listing review procedures; I am also afraid that investors will lose money in the secondary market, so I not only set up "protective measures" such as price limit, but also often "adjust the ipo rhythm" for the stability of the secondary market.
Such a beautiful idea turned out to be completely contrary to the original intention. The quality of A-share listed companies is not satisfactory. The companies with the best growth and the companies that bring the highest returns to investors are basically listed abroad. A shares remain one of the most unstable capital markets in the world.