Analysis Of Chinese Corporation Overseas Listing Financing

Since Qing Dao beer listing in Hong Kong exchange market in 1993, the Chinese enterprise overseas goes on the market already has ten several years history. The foreign market like a magnet, it attract more and more enterprise to finance. Although compares with the domestic security market, the expense in foreign security market is not certainly low, the huge financing quantity in each market, and the standard financing request, are the reasons attracting enterprise to overseas listing. The author want to show the advantage of overseas listing through this article. And along with the Chinese economy and the world economics more and more closely joins in together, there will be more and more enterprises to choose overseas listing. To these enterprises, which problems they should consider when they have a listing decision, also is this article wants to discuss.The first part is the introduction, through review the ten several years history, the article propose research significance, research objectives, research methodology and research findings.The second part is an analysis of the literature, the foreign researchers have five points in overseas listing, they believe overseas listing can promote enterprise's shareholder value, can solve enterprise's capital constraints, can make the enterprise become more famous, can make the investor win more protection, and overseas listing exist investor partial. And domestic researchers mainly have two points in the subject: they believe overseas listing is benefit to the improvement of corporate government, but have few effects in promotion of shareholder values.The third part is the effect to the cost of capital. The author use the formula by professor Stulz, think that overseas listing can reduce the cost of capital.The fourth part is the choice of market, through summarize the Chinese corporation's action in three foreign security market, analysis the new listing corporations distributed situation, find the advanced reason, and proposed which factors should be considered when the corporate make a listing decision.The fifth part is the choice of listing manners, introduce four mainly manners, including IPO, ADR listing, RTO and create a shell to listing. Different corporation should according to own situation chooses one or several manners to listing in the foreign market.The sixth part is other questions in overseas listing, the time of listing and risksin listing are also important to the corporation. This part mainly analysis how to catch the chance of listing and avoid the risk.The seventh part is the conclusion and limitation of the article. Through the article, the author find overseas listing not only financing the money, but also reduce the cost of capital, and promote the improvements of corporation government, but because Chinese security' market is highly separate from the world market, this situation make the shareholders market value not raise like the theory said. Recently Hong Kong will be the first listing market which Chinese corporate chose, and the America market will be the first listing market forward. Because getting the corporation's accounting data is difficult, so this article doesn't research each company's effect of the cost of capital, caused the article to stay behind glimmer of regret.