Research On Chinese Enterprises Overseas Listing

In recent years, the mainland economy gets fast and continuous development in a moderately easy monetary policy and sound fiscal policy. More enterprises urgently need to obtain money to improve product technology, increase the scale of production and expand the market share in order to improve the whole competition ability. Through the stock market financing becomes a very important channel for them to achieve the established objectives. In this context, many powerful enterprises, in addition to the domestic stock market listing financing, often choose to list abroad, such as Baidu, Shanda, Ctrip, New Oriental, Alibaba, etc.Securities market is gradually opening to deepen the correlation between stock market at home and abroad. While enjoying the securities market financing facilitation of globalization, enterprises who want to list abroad also need to consider risk conduction and agglomeration effect. In addition to considering the market linkage characteristic, however, enterprises exist differences in many aspects, such as its size, profitability, industry characteristics, strategic choice and financing purpose, etc. Enterprises listed in the domestic or overseas have their distinctive features and advantages, so in which market is more economical, more convenient and more helpful to enterprise development, it is a kind of "confusion of choice". Enterprises through analysis of its current situation and future development direction to choose the listed locations.This paper researches on Chinses enterprise overseas listing in the context of the global securities market openness, combining with the author's work experience and failure lessons as the first Chinese companies listed on the Singapore market. Through the comparative analysis of listing standard, fluctuation charateristics and regulatory environment in different markets, we deeply discuss the problem such as location choice preference, listed effect optimization and cross-border audit cooperation mode and then provide a theoretical reference and practical guide for Chinese enterprises to choose.This paper comprehensively consider the macroscopic and microscopic aspects, combining the market's correlation and difference with enterprise's preference, presenting an analytical framework for overseas market choice. It based on an empirical study with the nonlinear Copula function, and combining with the current situation of Chinese companies listed overseas, to find a conclusion that enterprises prefer to a higher interactive market when they get to be listed overseas. That's a useful experience for the firms which want to be listed overseas. According to the comparative analysis of listing standard, listing cost and listing efficiency in different markets, this paper points out that enterprise are supposed to consider internal and external factors when make choice, in order to ensure that the optimum allocation of resources and their own effectiveness maximization.In order to make the Chinese enterprise realize the positive and negative effects of overseas listing, this paper discusses the internal characteristics of market volatility, using the ARCH model to analyze the volatility clustering effect, the risk premium effect and the leverage effect. It's helpful for enterprises to fully understand the advantages and disadvantages of the overseas listing. Besides, when the paper compared the accounting standard and the auditing system between different markets, it based on the fact of deadlock of cross-border auditing supervision between China and the United States, and analyzed the reasons of it with differences in laws, attitudes of counties and demand. The paper addressed several cooperation modes to resolve the impasse, which has important practice meaning for Chinese firms to be listed in overseas markets.In conclusion, there has been a trend of overseas listing of Chinese firms, through the overseas listing, enterprises can be broaden international vision, standardized corporate governance mechanism, expanded production scale to achieve healthy and sustainable development of themselves. When seeking overseas listing, Chinese enterprises should set a clear and feasible financing strategy which fits the need of their development, and make a prudent choice adapt to the macro economic situation and industry running characteristics of the market. Regulators should accelerate the reform of enterprise listed regulatory system and mechanism, to promote the IPO transformation from examination and approval system to registration system, and then enhance the efficiency so as to adapt to the meet international capital market's requirement. At the same time, countries should strengthen the international cooperation, optimize the environment of international regulation, promote the construction of international board in China, and as soon as possible to complete the system cohesion, reduce system risks during overseas listing.