Legal Risks Of Mainland Enterprises Listed Overseas Study

The main purpose for an enterprise to be listed on stock market is to raise capital. For a long time, Chinese domestic enterprises have been scrambling for listing their shares on the international stock markets due to the ample capital resources available on the international markets and lag of legal supervision from Chinese authority.The legal risks for domestic enterprises to be listed on the international stock markets are the uncertain situation during the listing process caused by this legal behavior due to the possibility of failing to achieve what expected, it is the combination of the possibility and consequence of legal disputes. If this continues, it will shake the basis of the Chinese domestic national economy, thus it is necessary to prevent and control the legal risks associated with the listing of the domestic enterprises on the international stock markets.