Capital Seduced &Nbsp, Listing No Reason.

Research from the economics point out that China began in 2009.

The temptation of listing has made clothing enterprises go all the way.

In the mid and late 1990s, clothing companies such as Shanshan, Meyer and YOUNGOR went on the market in the domestic stock market. After entering the twenty-first Century, red bean, Lining, seven wolves, Bosideng, Mertes Bonwe, Hinur and other enterprises were landed in mainland China, Hongkong and even overseas securities markets, providing financial support for the development of enterprises.

The development of China's garment industry has changed from the initial price war to the brand war. The industry has the view that the brand war may be a capital war.

According to industry sources, nearly 100 textile and garment enterprises are waiting outside the capital market, many of which are repeatedly rushed back and forth.

The main financial data of several textile companies were listed before and after two years, and the conclusion was: fame and gain, even among Forbes's global rich list.

Zhou Chengjian, chairman of the American Apparel, has been ranked 307 in the latest Forbes global richest list.

In recent years, the textile companies listed on the market have shown good results: the total assets of the Pathfinder increased by 225%, the operating income increased by 39%, the net profit increased by 69%, the total assets of the United States were increased by 146%, the business income increased by 42%, the net profit increased by 61%, the total assets of the company increased by 134%, the operating income increased by 37%, and the net profit increased by 97%.

NetEase released the "2010 clothing industry development survey report" shows that more than 50% of garment enterprises have plans for listing in the next two years, while more than half of the enterprises believe that this will impact the existing brands.

A staff member who is preparing to go public has revealed that the company is trying to enter the capital market in various ways. A shares and H shares have higher requirements for the quality of listed companies. If they attack domestic A shares and H shares, they will fight for listing in the offshore capital market.

Although the financing ability of offshore capital markets is uncertain, it is still worth trying to lay aside the many benefits beyond financing.

Because in addition to financing, become a listed company, will receive preferential policies and attention, enhance the capital of foreign negotiations, increase the opportunity to introduce strategic investors, etc., "these are beyond the resources of money!"

Listing is not a warning case for failure cases.

At present, there are three main listings of domestic clothing enterprises, that is, the domestic A share market, the Hongkong market and the NASDAQ.

Unlike the "approval system" of domestic A shares, the United States adopts the "registration system" for the audit of the listed companies. As long as information disclosure and financial statements meet the American standards, enterprises can get the opportunity to go public, and the success rate of listing in the United States is relatively high.

Just as the staff who are preparing to go on the market said, if they fail to attack domestic A shares and H shares, they will fight for listing in offshore capital markets.

However, the US listing is not as easy as Chinese entrepreneurs imagine.

After the listing of clothing companies, there is a multi-directional spotlight. Besides the direct supervision of SEC and the exchange, as well as the supervision of all the auditing firms, law firms, hedge funds, media and individual investors, supervisors are ambushed in every corner to gain profits while promoting the healthy operation of the stock exchange market.

Mcglaughlin encountered class action, which is a good play staged by law firms and investors.

After the company has disclosed its performance, once the share price falls, some lawyers will contact the small shareholders extensively, and seize the various minor errors in the quarterly or annual reports, so as to bring a class action lawsuit against the listed company.

The reason why American lawyers are so active is that if a lawsuit wins, a lawyer can get a lawyer's compensation of about 20-30%.

Once being sued, the price of the litigant company will drop sharply in the short term, and the fall will often be as high as 50% or even more than 90%, so the hedge fund will get huge profits from it.

In addition to strict supervision, the United States has a heavy punishment on illegal listed companies. Mcglaughlin has been involved in many lawsuits. If he loses, the compensation will be an astronomical figure.

In fact, the US stock market is far less beautiful than we seem. It is full of temptations and traps.

For those Chinese companies that have been or are ready to list in the US, Mcglaughlin's warning has to be taken seriously.

Domestic listing or listing in the US, or even going public, must be reconsidered.

If garment enterprises have developed to a certain extent, listing has become a natural process, so preparations should be made before listing.

The listing of clothing enterprises usually takes a year or even a few years, and its success is limited by many external factors.

At the same time, the internal problems of enterprises will also affect their listing.

According to past experience, the common internal problems of Chinese clothing enterprises in the listing process include: reorganization of legal framework, independent operation principle, business divestiture, related party pactions, competition in the same industry, tax problems, accounting problems and corporate governance.

These internal problems can be categorized as legal and financial problems in general.

In the near future, many listed companies have introduced relevant legal teams and financial teams in advance to sort out and standardize enterprises in law and finance, so as to ensure that enterprises will not obstruct the process of listing because of their own reasons when the best time to market is coming.