China's Securities Companies Listed Ways And Reasons For Study,

As Chinese accession to WTO at the end of 2001, China has planed the timetable for the full liberalization of all industries. Chinese financial market also with the accession to the WTO, slowly opened. With the opening of the banking sector, foreign banks have entered China. Chinese state-owned banks and local banks are effective to enhance the competitiveness with the international counterparts through the successful listing of Chinese banking sector.At present, due to the large number of securities companies in China, the China Securities Regulatory Commission is also actively to straighten out and clean up the non-standard areas in the securities market in the recent years, and actively support a large part of the bigger and stronger firms. And there is a big gap between Chinese securities companies and foreign counterparts in terms of both the scale and the strength. The development of foreign firms has been a very long history and it is also very mature. The development of Chinese securities companies only exits a short period of decades. Chinese securities companies because of the historical reasons, don' t have perfect modern enterprise system and the equity is quite focused. They can not be in the stock market to raise funds effectively for a very long time.However, Chinese securities companies try their best, at the time of listing, to carry out the transformation through the joint-stock reform and enterprise system. They also solve the issue by acquisition of a number of small and medium-sized firms as well as the use of a variety of financing instruments for their own the growth and development efforts. There have been CITIC Securities (600030) successfully listed in Shanghai Stock Exchange through IPO, while other more securities firms have used indirect manner of backdoor listing. Though securities firms have used different methods, they take the effect of stabilizing the stock market, as well as expanding the business. With the continuous reform of the financial markets in depth, an increasing number of firms will sign in the stock market through the backdoor listing and IPO.In the time of listing, Chinese securities companies are also faced with how to choose the way to list on the stock market. It is the issue to choose initial public offering and raise more funds or backdoor listing to make use of additional means to raise funds gradually. These are different options for firms considering the company scale, as well as the different desire for capital. The liquidity of the securities is more hope for its way of initial public offering, while in general small and medium-sized firms hope to quickly and with minimum costs in exchange for maximum benefit.