Why do China companies desperately go public in the United States? What is the reason?

Which stock market in the world is A-share? According to the data, China A-shares surpassed the Japanese stock market with a market value of more than US$ 5 trillion from 20 15438+0 in 2005, becoming the second largest stock market in the world, second only to the US stock market. After a lapse of 45 months, on August 3rd, 20 18, China A shares shrank from the highest market value of nearly 10 trillion dollars to 6.09 trillion dollars, while Japanese A shares successfully surpassed China A shares with a total market value of 6. 17 trillion dollars, and China A shares became the third largest in the world.

Why do some people say that many China companies go public in the United States, but few foreign companies go public in A shares? By 2065438+September 2008, there were 494 companies listed in the US stock market, including Alibaba, JD.COM, Baidu, Vipshop, Ctrip, Momo, SouFun, ZTO Express, Sina, 58 Tongcheng and Sohu. So far, American companies have not been listed on the China stock market; China's stock market is semi-closed, that is, it has not yet opened the door to listing, so American companies cannot land on China's stock market.

The U.S. stock market has opened the door for China companies to go public. Why should China companies go public in the U.S. stock market even if they don't want to? There are several reasons why this cannot be done:

Reason 1: China A shares have high listing conditions and complicated procedures; Compared with US stocks, the listing conditions are relatively simple and the listing procedures are relatively simple. Many China companies prefer to land directly on the US stock market;

Reason 2: The listing time of China A shares is too long, and there are too many IPO queuing procedures. Many companies are reluctant to spend years waiting for A-share listing. What if they wait in line for years and waste time and money; Many China companies can't wait for this time and have to choose to land in the US stock market conveniently and quickly;

Reason 3: The listing conditions of US stocks are relatively loose compared with A-shares. Some China companies tried to go public in the US stock market after the A-share listing conditions did not meet or were rejected.

Reason 4: The major shareholders or actual controllers of some domestic listed companies have foreign investment background. The major shareholder would rather the company controlled by him directly land in the mature US stock market than apply for listing in China A-share market.

Reason 5: Some major shareholders of domestic listed companies have emigrated to the United States, or major shareholders with American background directly listed their companies in the US stock market, which is convenient for the national conditions of the US stock market and would rather be subject to US regulatory policies; Secondly, it can also avoid the transfer of domestic assets, which will not be limited to China monitoring;

The above five reasons are the real reasons why China companies choose American stocks from other countries instead of A-shares. Different China companies think that the reasons why they choose to list in the United States rather than in China will be different.