Research Within The Listed Red-chip Architecture Business Return

In the development of Chinese capital market, domestic enterprises have been seeking listing on overseas stock exchanges. Nevertheless, current situation suggests a great change:disadvantages of foreign market are rising; while advantages are accumulating domestically. Giving that, bounds of potential enterprises find to list on domestic capital market is much more attractive.This project analyses determinants of overseas or domestic listing decisions, so as to infer the motivations of firms to list on domestic markets. Aiming to research the feasibility of red-chip companies listing on domestic exchanges, this project presents the legal and accounting requirements to domestic listing, the industrial-relate factors which play a determinant role in the choice of overseas listing venue, and the position of regulatory agency to companies of such kind listing domestically. The contribution is to define the market preference of red-chip companies listing their stock domestically.Under the framework mentioned above, the project uses Net263, Hirisun Tech, Sunsea, and Gloria pharmaceuticals as cases, analyzing the build-up and break-down of red-chip, as well as concerns of regulatory agencies and resolutions when listing domestically. By analyzing and comparing the four outstanding cases, the project gets the conclusion of issues encountered by red-chip companies, such as foreign exchange registration, special purpose company disposal, overseas investments existing, and tax preferential. Accordingly, it then offers practical resolutions to companies of such kind.