The Recommendations for Chinese Companies Projecting to Listing Overseas

DOI

10.2991/aebmr.k.220405.068How to use a DOI?

Keywords

Overseas listing; Chinese companies; Market segmentation hypothesis; Bonding hypothesis

Abstract

This paper summarizes the experience of Chinese companies overseas listing and examines the risks faced by Chinese companies. As Sino-U.S. relation has strained from 2018, the risks faced by the companies has become complicated. Therefore, the paper offers some recommendations for the companies that project to list overseas in the future. Generally, the company that wants to list overseas is only concerned that the foreign investors do not understand their business model, and thus the company cannot obtain an ideal valuation. However, as Sino-U.S. relation has tightened from 2018, the companies are required to be careful to deal with regulatory pressures posed by both China and the U.S. Therefore, as China has introduced a sci-tech innovation board and Beijing Stock Exchange offering more choices for technology companies without stable profits, for the technology companies owning sensitive data, it is better to give priority to listing in the A-stock market or in Hong Kong stock market to minimize the risk from regulation. In addition, this paper finds that the reason for many overseas listing Chinese companies is because they cannot fulfill the requirements of IPO in China stock market rather than they seek to acquire a premium predicted by the market segmentation hypothesis and the bonding hypothesis.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Songhui Li
PY  - 2022
DA  - 2022/04/29
TI  - The Recommendations for Chinese Companies Projecting to Listing Overseas
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 417
EP  - 421
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.068
DO  - 10.2991/aebmr.k.220405.068
ID  - Li2022
ER  -