Bridging The Legal Gap Of Chinese Cross-Listings In Germany-Differences In Both Jurisdictions' Listing & Issuance Requirements

The past developments of Chinese companies conducting IPOs show,that international Cross-Listings are popular amongst Chinese firms.One form of conducting such a Cross-Listing as secondary listing is a D-Share listing at CEINEX in Frankfurt which could offer a new IPO-channel for Chinese firms in addition to existing Cross-Listings at e.g.Hong Kong or New York.Frankfurt,as a major financial hub in continental Europe,presents an attractive listing location for Chinese issuers and provides issuer with access to new groups of investors.At the same time,non-Chinese investors have the opportunity to invest in a Chinese company on the D-Share marketplace without the need of following stringent regulatory and technical hurdles for foreign investment in the People's Republic of China(PRC)1.This thesis presents a comparison of both jurisdictions' listing mechanisms,to provide future issuers with a better understanding of the application process.The overall listing and issuance process is clustered in three phases and this work highlights the major steps of each phase.The biggest differences is found in the approval process governed by the national regulators and the period reserved for these approvals.IPO listings in China are subject to approval and a substantive qualitative review by the CSRC.The CSRC requires all indicators to be profitable.This differs from the German admission system in which BaFin approves the prospectus only and is not conducting a qualitative review.This work will provide an overview of the relevant laws,regulations and rules of both jurisdictions.