No matter which stage one enterprise is at, its economic and technology power decide its resource leverage operation. We know well in domestic capital market and international one, and requirement of different customers. By virtue of our professional knowledge and extensive management experience, we provide our clients with professional services in various areas, such as strategic financing, reform of joint stock system, listed IPO, merger and acquisition, capital rearrangement, MBO/ESOP, and so on. We design financing structure and provide creative and original plan fitting company's developing stage.
We have an in-depth study on enterprises' development strategy, which enable us to apply “capital drive “mode to the financing plan design, and change the capital into the base of the new enterprise's swift development.
We position ourselves in this new knowledge economy as the leverage of wits for our clients.
• General mode:
Capital is one corporation's foundation. Generally speaking, a corporation has two ways of finance: one is indirect finance, the other is direct finance. Direct finance is also called equities finance that includes domestic listing, foreign listing and private offering; indirect finance is also called creditor's rights finance that includes issuing enterprise's bonds or asking banks for loans.
By issuing stocks that can circulate and transfer in the security exchange market, the listed corporations are connected directly with the security exchange market. Hence they gain a shortcut to direct finance. Therefore issuing stocks and listing has become many enterprises' focus and pursuit.
As a rule, there are two ways for enterprises to get listed in the market: the first one is to obtain the securities supervisory agency permission and then issue public stocks and get listed in the market including domestic listing and foreign listing; the second one is to buy out listed companies, thus get listed indirectly.
• Foreign listing
Foreign listing refers to domestic companies requisition stock issuance and IPO overseas. Till now, China Securities Regulatory Commission (CSRC) has signed Supervisory Co-operation Memoranda of Understanding with securities supervisory agencies of Hong Kong , America , Britain , Singapore , Japan , Australia and other five countries and regions.
At present, in china, share A is issued by the means of access trust corporation of underwriting by stocks brokers. Accesses hence become scarce resource, which makes stocks issuance in China not easy, therefore, many companies qualified for stocks issuance turn to issue public offerings overseas.
Furthermore, the issuing examination and approval time overseas is shorter than that in China , the issuing qualifications are less and issued red chips for getting listed can circulate throughout. So, foreign listing is a financing preference for China enterprises.
There are three main ways to get listed overseas including issuing H share, red chips and back door listing.
• Share H
Companies incorporated in mainland China and are listed on the Hong Kong Stock Exchange are called H share, because “H” is the first letter of Hong Kong, and those directly requisition listing on New York stock exchange are called N share. However,
In general, Companies incorporated in mainland China and are listed on both the Hong Kong Stock Exchange and other foreign stock exchanges are called H share.
Characteristics of getting listed by H share are as followed:
• The company is a stock joint one incorporated in mainland China .
• The company's listing must adapt to both the domestic Corporation & Enterprise Law and overseas listing terms, being under the supervision of the two laws.
• To get listed, one company has to pass the CSRC examination and gain it approval.
• Being limited by mainland China capital regulations, the corporate shares of domestic corporations listed by H share can not get listed and traded on securities markets overseas.
• Due to dual-audit and law affairs dual-notarization of both domestic and overseas, the listing fee is higher. Therefore, most Chinese enterprises don't prefer listing by H share except when in urgent financing need.<the next>
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