Chinese Enterprises Overseas Siege: Rush To List &Nbsp; Hurry To Withdraw From The Market

Core tip: Chinese enterprises overseas

Chinese companies are launching a reality version of "siege" overseas listing. Recently, Daqing technology, a listed nanotechnology company in the US, has received a notice of delisting from NASDAQ.

There are many reasons for delisting, including stock price.

Status one: inactive Trading

Take the performance of China's concept stocks in the US market in May 20th as an example. In addition to the companies that have stopped trading, up to 29 Chinese stocks are less than 10 thousand shares, among which bio pharmaceutical companies are the main ones.

And Youku, Baidu, Sina and other Internet Co volume exceeded 5 million shares.

The price of the 43 companies is less than US $2.

Status two: underestimated

Second, some Chinese traditional industries will probably not get a better assessment of their listing overseas.

In 2007, as the first Chinese patent medicine company listed on the NYSE in China, Tongji Tong fell below the issue price, and the stock market was sluggish.

The important reason is that Tongji Tang's concept of proprietary Chinese medicine and its profit model have not been recognized and recognized by overseas investors.

Status three: unfamiliar system

It is reported that the United States market has a strict market rule, which is why it attracts many companies to rush in, but also requires the quality of all aspects of the enterprise to be excellent.

Some Chinese enterprises have encountered a series of problems because they do not understand the rules of the US capital market.

Beginning of listing: forced overseas listing for performance agreement

Why do so many Chinese companies choose to go to the overseas capital market?

Regarding this, Beijing the Yellow River general manager of Anxiang Tai said yesterday that some Chinese enterprises had introduced overseas strategic investors before listing, and that the conditions for these overseas investors to invest in Chinese enterprises were to be listed on overseas capital markets, so Chinese enterprises were forced to go overseas for the purpose of fulfilling the agreement.

The second case is "fooled" by intermediaries.

According to the Yellow River, many Chinese companies in the US OTCBB market did not understand the situation of the US capital market, and were flickered by some intermediate institutions who specialize in the US market.

Third, some Chinese enterprises do not want to finance, but the motive is to have the title of "US listed companies".

Industry: there are difficulties behind the delisting.

Du Xiangyang, vice president of the United States Yong Li capital (Asia) Limited, said that China's domestic capital market is active, and the price earnings ratio of the gem is tens of times or even hundredfold, attracting some overseas listed Chinese enterprises to choose delisting and want to "rewind" again.

The Yellow River is willing to say that there are many factors for Chinese listed companies to choose to withdraw from the market. First, the US system is different; secondly, the OTCBB market in the US has no financing function, and its trading is not active. Only by pferring to the US main board or the Nasdaq market can we have the financing function, and many Chinese enterprises fail to meet the requirements, so we have the idea of delisting.