A Study On Chinese Companies' Listing On U.S. Stock Markets

Along with the quick development of the international capital market globalization, more and more Chinese companies are cognizant of the most basic and the most direct margin method is to cross over national territory, coming direct to a foreign capital market. Among them, the Chinese companies that make the choice of listing on the U.S. stock markets have a great comparison. Although it will cost more on laws, accountancy and will undertake the additional burden to moderate with international standard, the companies' management is cognizant of many latent advantages, such as extending investor foundation, increasing stock trade amount, acquiring more money raising opportunities. The stock exchange such as NYSE and NASDAQ are more attractive to these Chinese companies. However, because of the information dissymmetry, not all the companies coming to the United States market get the expected results before. So this paper try to solve the problems of what are the purposes of choose different locations and methods and whether these companies gain the expected results.Study on the Chinese companies list on the U.S. stock market have following meaning. Firstly, along with continuously development of the Chinese economy, more and more foreign investors produced strong interest to the companies of China. Secondly, more and more Chinese companies choose to list on NYSE, NASDAQ, OTCBB and the Pink Sheets. To coordinate for the higher developing speed, the study on the choices of locations and methods are extraordinarily important.