For a listed company. If it is going to be listed on another stock exchange, it can have two choices. One is to issue different types of stocks abroad and list them in overseas markets. Some companies in China not only issue A shares in China. It is this type to issue listed H shares in Hong Kong.
Another form is that the same type of stocks are listed in two places, and the cross-market circulation of stocks is realized through international custodian banks and securities brokers. This way is also commonly known as the secondary listing, and listing on overseas markets with depositary receipts belongs to this type.
Judging from the actual operation of the securities market, listing shares in two markets at the same time has many advantages. For example, every international stock exchange has its own investor group. Therefore, the listing of stocks in multiple markets will rapidly expand the shareholder base, improve the liquidity of stocks and enhance the ability to raise funds. Secondly, listing the company's shares in different markets is also conducive to improving the company's visibility in the listed places and enhancing customer confidence, thus playing a good role in promoting its product marketing.