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What is the difference between a company listed abroad and a company listed domestically?

There are three differences between companies listed abroad (i.e. overseas listing) and domestic listings:

1. The overviews of the two are different:

1. Foreign listing Overview: refers to the issuance of shares by domestic joint-stock companies to foreign investors and public listing on overseas stock exchanges. There are two modes of overseas listing of Chinese enterprises: direct listing and indirect listing.

2. Overview of domestic listing: In order to solve the problem of development funds, there are long-term financing channels, greatly improve the company's visibility, standardize internal management, and obtain a long-term foundation for the healthy development of the enterprise. It is a development method adopted by the enterprise. .

2. The advantages of the two are different:

1. Advantages of overseas listing: The advantages of overseas listing are that applicable laws are more easily accepted by all parties, the approval process is simpler, and it is tradable. A wide range of stocks, convenient equity operations, tax exemptions, etc.

2. Advantages of domestic listing: it can accumulate many intangible assets, such as brand attention, talent attraction, etc. The liquidity of corporate assets has also been greatly enhanced, which is of great significance to corporate mergers and acquisitions. In addition, as far as individual management is concerned, they may create a wealthy management team. Listed shares can be used as a means of payment for mergers and acquisitions to attract international and domestic strategic partners.

3. The circulation of stocks between the two is different:

1. The circulation of stocks listed abroad: Unlike the mainland capital market, there is no difference between tradable shares and non-tradable shares in overseas capital markets. . After the stock is listed, shareholders can easily calculate the value of their wealth based on the stock trading price multiplied by the number of shares held. Moreover, if shareholders want to transfer their stocks, they only need to entrust a dealer to sell them.

2. Domestic listed stock circulation: Due to the difference between tradable shares and non-tradable shares in the domestic capital market, the value of the stocks held by the company's major shareholders is different from the listed tradable shares, and the transfer method is also affected. Lots of restrictions.

When a company is listed abroad, foreigners will not make money because the shares of the listed company are in the hands of the shareholders.

Baidu Encyclopedia-Overseas Listing

Baidu Encyclopedia-Domestic Listing