Analysis Of China's Listed Market Choice

At present many companies in China are struggling to become joint-stock companies for the sake of considerable benefits, but some of them operate by disregarding their own actual conditions and the preconditions for becoming a stock company, resulting in failure and waste of large sums of money. A case in point is that a business in Qinghai province which spent more than 20 million yuan and yet failed due to an incorrect choice of the places. What's more, a hot-pot shopkeeper in Chengdu city, Sichuan province is even preparing to get his restaurant into the sub-market. Under such a circumstance, therefor, it is of some practical significance to make a research into the important factor in the preliminary stage of applying to become a stock company----the place. This paper begins by giving an introduction to the preconditions at New York Stock Exchange, Nasdaq stock market, Tokyo Stock Exchange, London Stock Exchange, Frankfurt Stock Exchange, Australia Stock Exchange and Shanghai Stock Exchange, etc. Then, the paper after comparing the advantages and disadvantages of entering the market at home and abroad, comes up with advice that common companies in China should give top priority to the home market. Finally, after analyzing the advantages and disadvantages of entering overseas stock exchanges, a suggestion is made that common companies choose the old markets as well as the new ones.Main Contents:This paper makes a brief introduction to the preconditions of New York Stock Exchange, Nasdaq market, Tokyo Stock Exchange, London Stock Exchange, Frankfurt Stock Exchange, Australia Stock Exchange and Shanghai Stock Exchange, and the situation of China's companies entry into the above stock exchanges.Analyzes the advantages and disadvantages of going into the market home and abroad in terms of state policy, market for product, prospect of product, management, preference of the investor, risks etc. and suggests that common companies first choose domestic stock exchanges.Analyzes the preconditions of overseas stock exchanges, the results, costs and effects of the internet technology on stock markets and proposes that the old markets as well as the new ones should be taken into account when Chinese companies decide to apply on overseas stock exchanges.In view of the costs resulting from the multi-entry and the fact that the internet technology will eventually combine all the stock markets into a whole, proposes that Chinese companies be cautious while making decisions on this question.