A Shares Difficult To Allow Good Corporate Internet Giant Blocked

After the successful listing of Jingdong mall in the US, its market capitalization reached RMB 170 billion. The total value of the four Internet Co overseas markets is 1 trillion and 420 billion yuan, which is combined with Baidu, Qihoo 360 listed in the US and Tencent holdings listed in Hong Kong.

This scale not only exceeds the market value of China Petroleum A shares by 1 trillion and 230 billion yuan, but also reaches 6% of the total market capitalization of the two cities in Shanghai and Shenzhen. Apart from these four companies, there are still many Chinese high quality enterprises. Due to the restrictions on the ownership structure, financial admittance and listing auditing, the A share market will go to the overseas market to raise funds for listing.

And want to A shares The most easily finished gem IPO Enterprises still need to achieve these hard targets: they have made continuous profits in recent two years, and net profit has accumulated at least 10 million yuan in recent two years, or profits in recent years. The operating income of the latest year is not less than 50 million yuan. By this measure, Jingdong, which rose by 10% on the first day of listing, could not enter the A share market.

The Chinese business tycoon in 2013 and 2012 net profit were negative, losing 1 billion 729 million yuan and 49 million yuan respectively. Market participants pointed out that unable to inject strong momentum into the A share market has become a major reason for the A share market downturn.

At the same time, domestic capital market Restrictions on shareholder qualifications and employee stock ownership have also become a stumbling block for quality companies, especially Internet technology companies, to land on A shares. From the recent launch of Alibaba's listing in the US, many Chinese companies have adopted the variable interest entity (VIE) model to list overseas.

A senior executive of the Baltimore asset management and research company pointed out that after 2005, this mode helped a large number of Chinese companies to list in the United States or reverse takeovers, but this complicated equity execution mode could not be realized in China's capital market.

Yin Zhongli, an expert with the Financial Research Institute of the Chinese Academy of Social Sciences, pointed out that, in accordance with our legal restrictions, if the listed company is to have more than 200 people holding shares, the company will not enter the stock market. It is understood that the use of employee stock ownership and other equity incentive methods are not uncommon in the early days of Internet technology companies.

In the "nine new countries" issued by the State Council this month, it will release positive signals to promote the listing of unprofitable enterprises, which will become a breakthrough to solve the problem of A shares being difficult to make good enterprises.