Both the GEM and the main board put forward clear requirements for the profitability and operating income of enterprises, but at the beginning of listing, technology Internet companies often failed to meet such conditions. Many companies even lose money every year when they go public. The most typical one is JD.COM, which went public in the United States after years of losses. However, for many high-tech Internet companies seeking to go public, it is just the initial stage of development, and they need to go public for financing. The profit model is unclear and their business is still losing money. If we wait until it is profitable to go public, it is likely that the time window for development will pass.
2 Domestic listing requires the same shares and rights.
Many high-tech Internet companies need a lot of financing and multiple rounds of financing. In order to ensure the founder team's absolute control over the operation and avoid losing power or being trapped by capital, the AB share system will be set up. For example, 1 B shares are equivalent to 10 times the voting rights of A shares. In this way, even if the founder team has only a few shares, it can complete absolute control of the company. Domestic companies such as Alibaba, JD.COM and Baidu have adopted similar ownership structure design. This requirement has isolated a large number of technology Internet companies.
Step 3 line up, line up.
There are many domestic enterprises, and the total number of small and medium-sized enterprises has exceeded 80 million. Most of them have financing needs, and they are very enthusiastic about listing, and then there are more enterprises waiting in line. As a result, there are too many companies to be listed and the queue time is long. Compared with domestic, foreign countries passed quickly, obviously unwilling to queue up in China for a long time.