The Research On Chinese Domestic Enterprises Listing In Hongkong Problem

As a part of capital market, the stock market plays an important role in allocating funds and resources Mainland is far from to productive use in the economy. At present, the stock mark In the goal of an efficient stock market. How to reach the goal is not only the concern in the academic society but also a policy issue in China.The ten year overseas listing experiences involved more foreign capital and expanded financing channels. On the other hand, listing propelled reform of China's enterprises and accelerated steps of improving enterprise governance and establishment of modern enterprise system, which due to contradiction from different aspects still need our attention. One of the environmental reasons are the shrink of international capital market, the others including the objection of domestic market, culture gap between foreign investors and our enterprises and unbalanced information distribution. The stock market in Hong Kong when formal trading began has more than one hundred years history since 1891, and that of Mainland is just 20 years. I believe that both the experience of and lessons from the development of Hong Kong stock market are useful to improve the stock market in Mainland.According to M-M theory, the chioce of listing location was useless if the global capital market was a perfect integration market. However,overseas listing is becoming an increasingly important strategic issue for companies.A concomitant growth of theoretical and empirical studies seeking to understand the benefits and costs of the corporate decision to list shares on overseas exchanges have shown the impact of listing abroad should not be overlooked.One attempts to explain the relationship between the price of H-shares and A-shares. The other attempts to rationalize why firms pursue overseas listings in one aspect, such as the effect of Hongkong listing on capital structure, corporate governance and risk exposuers of the companies.The paper elebrated the present situation and character about domestic enterpries listing in Hongkong, and comparative analyze the various overseas market,thoroughly analyzed the reasons of domestic enterpries to choose to list in Hongkong. At the same time ,the article disscuss some mature theories of listing in oversea markets accompany with some theories about domestic enterprises listing in Hongkong. The paper carried on theoretical analysis listing in Hongkong which is advantageous to reducing the capital cost .the paper which combined the reality with the theory ,provides the guidance on the aspect of theory.