Legal Protection Of Red-chip Enterprises' Listing In China

Developing domestic listing paths for Red-chip enterprises is the requirement of the national innovation-driven development strategy and the choice for the opening of the capital market to the outside world.Red-chip enterprises also have a strong desire to return.So,a series of legal and policy norms have also been implemented to help Red-chip Enterprises' Listing in China.Red-chip Enterprises' Listing in China is mainly based on the new Securities Law and rules of SSE STAR Market,however,the Securities Law rarely involves specific rules of red-chip companies and there are many rules of SSE STAR Market that need to be continuously considered.Considering the practices of China Resources Microelectronics Limited and Ninebot Limited,and the points of the listing committee`inquiry,the main legal challenges of Red-chip Enterprises' IPO in China as follows: subject access;information disclosure;extraterritorial jurisdiction and law enforcement cooperation.These three issues are the three key points in the domestic listing process of red chip companies: whether they are eligible for listing,how to achieve listing in the core registration system,and how to effectively monitor their behavior.The entity access system needs allow differentiated voting rights,not yet profitable to achieve listing,and clarify the legality of the VIE structure;information disclosure needs to further integrate the characteristics of complex structure and cross-border financing,emphasiz penetrating disclosure,simultaneous disclosure at home and abroad,and allow the disclosure of financial information using equivalent accounting standards or overseas accounting standards;extraterritorial jurisdiction and law enforcement cooperation must clearly cross-border under the framework of the new Securities Law Jurisdiction,expand cross-border law enforcement cooperation.