Brief introduction of domestic listing: In order to solve the development trend of assets, there is a long-term financing mode, which is adopted by enterprises to further improve their brand awareness and standardize internal control management and obtain a long-term foundation for their healthy development.
The advantages of overseas listing are different: the advantages of overseas listing are that the application of law is more easily accepted by many parties, the examination and approval procedures are simpler, the coverage of tradable shares is wide, the operation of shares is convenient, and tax exemption is provided.
Advantages of listing in China: you can accumulate a large number of intangible assets for amortization, such as well-known brand awareness and talent attraction. The turnover ratio of enterprises has also been greatly improved, which is extremely important for enterprise mergers and acquisitions. In addition, as far as executives are concerned, it is very possible to build a rich management team. Listed equity can be used as a payment method for corporate mergers and acquisitions, attracting international and domestic strategic partners.
Inconsistency in accounting and auditing: Financial auditing is always the top priority whether it is listed in a region or overseas. It can be said that half of the listed companies failed in accounting audit.
Accounting audit is a complex whole process of standardizing and sorting out enterprises. However, for overseas listing and regional listing, it should be noted that they adopt different accounting and auditing systems. For regional listing, the audit mechanism is based on the existing accounting standards for enterprises in China. However, for overseas popular financial markets, the internationally accepted accounting standards for business enterprises are adopted for auditing. Therefore, for enterprises, we must not distinguish ourselves, saying that other enterprises will definitely do it or not.
What are the advantages and disadvantages of overseas listing? Objectively speaking, the speed of issuing new shares in China's financial market is accelerating, and the scale of stock market operation is developing. However, if there are too many new shares to be sold in a short time, it will inevitably have a negative impact on the secondary market. Subjectively speaking, there are many restrictions on issuing new shares in China. In order to expand the scale of manufacturing enterprises and improve their competitiveness, low-cost overseas listing is undoubtedly a good choice for enterprises. In addition, compared with domestic listing, foreign listing cycle time is shorter, the program flow is more convenient, and the overall capital cost of enterprises is reduced.
Because the market of Chinese enterprises is mainly in China, and foreign investors are not familiar with Chinese enterprises, it is difficult for enterprises to issue shares at higher prices. Generally speaking, the initial public offering of China shares is higher than that of foreign markets, especially foreign growth enterprise market, and the P/E ratio of initial public offering is generally twice that of foreign markets.
For most domestic enterprises, foreign markets have brought relatively perfect restraint mechanisms, but there are also huge language expressions, cultures and fortresses. After listing overseas, some China enterprises are not familiar with the operation mode of improving foreign capital markets and have poor communication with investors, which leads to a depressed sales market, falling stocks, difficulties in refinancing, and even the danger of delisting stocks.
At the same time, due to the poor communication of information content and language and culture problems, foreign investors cannot deeply understand the investment value of China enterprises, which is not conducive to China enterprises to create internationally renowned brands and reputations. Foreign-listed shares refer to the shares raised by a limited liability company from overseas investors and listed overseas. It also adopts the method of applying for registration of individual stocks, with the face value marked in RMB and subscribed in foreign exchange. When listing overseas, you can use overseas stock certificates or other stock derivatives.